IBM leases 8.3 lakh square feet office space in Bengaluru for 10 years
US technology major IBM has leased 8.3 lakh sq ft office space in Bengaluru's Embassy GolfLinks Business Park at a starting monthly rent of ₹140 per sq ft
IBM India Private Ltd has leased 8.3 lakh square feet of office space in Bengaluru for a period of 10 years at a starting monthly rent of ₹140 per square feet, property registration documents accessed through real estate data analytics platform Propstack showed.
While the lease period will commence in January 2025, the lessee will enjoy a rent-free period of six months initially, the documents showed. The deal included a security deposit equivalent to six months of rent.
As per the documents, the leased premises include multiple floors spread across Blocks A, C and D of Embassy GolfLinks Business Park in Domlur. The three buildings are named Cypress Point, Pacific Dunes and Peach Tree, respectively.
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Terms of the deal agreed to in the lease deed include rent escalation of 12% to ₹156 per sq ft after 5 years. It will further increase by 15% to ₹180 per sq ft after 8 years, the documents showed.
Meanwhile the rent for each car parking slot will increase from ₹4,526.70 between January 2025 - December 2029, to ₹5,206.70 in the following five-year period, the documents showed.
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The deal also includes maintenance charges calculated on a closed book basis at the rate of ₹21 per square foot of super built-up area till December 31, 2027, as per the clauses cited in the agreement.
Subject to certain conditions, the lease can be renewed for a period of five additional years, the documents stated.
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According to the agreement, neither the lessee, nor the lessor can terminate the lease during the first 10 years. In other words, the deal includes a lock-in period of 10 years.
Queries have been sent to both IBM India Private Limited and the Embassy Group by HT.com on mail. The story will be updated once a response is received.
Other deals
Since its entry in 1951, IBM has expanded its presence across multiple cities in India, including Bengaluru, Hyderabad, Gurugram, Mumbai and Kolkata.
Earlier this year, IBM entered into a deal with realty developer Midas Projects, for access to 1.06 lakh square feet of office space spread across two floors in Divyasree Orion, a 26-acre campus in the prime Gachibowli area of Hyderabad.
The company pays a monthly rent of ₹70.23 lakh as part of the five-year lease that commenced on April 15, 2024. Terms of the deal include a 4% escalation in rent after every 5 years, documents accessed through Propstack showed.