Amazon leases 2.3 Lakh Sq Ft in Powai at a rental of ₹3.57 crore per month

This deal marks a major boost for the post-pandemic real estate market, especially for commercial office spaces, which had seen a significant drop in demand driven by Work-From-Home set-ups

Mumbai: One of the largest rental deals in the city this year was sealed when Amazon Data Services India leased a 2.39 lakh sq ft land parcel in Powai for ₹3.57 crore per month. The lease for the land, which is owned by Larsen and Toubro, is for 21 years and six months, with a lock-in period of 15 years.

Amazon plans to build a data centre on the premises, according to the documents. The deposit paid for the land lease is ₹99 crore (HT Photo)

This deal marks a major boost for the post-pandemic real estate market, especially for commercial office spaces, which had seen a significant drop in demand driven by Work-From-Home set-ups.

Amazon plans to build a data centre on the premises, according to the documents. The deposit paid for the land lease is ₹99 crore. According to registration documents provided by Propstack, the deal was signed in June this year. A stamp duty of ₹5.64 crore was paid for the registration. Of the total lease tenure of over 21 years, 24 months is rent free. The rental will also see an escalation as time passes. Amazon and L&T did not respond to an email seeking their response on the deal.

The sellers are The Ruby Mills Ltd and Mindset Estate Pvt Ltd, as per the documents provided by Zapkey.com. The area of the office space is 14,737 sq ft and along with the office, the new owners will also have access to 10 car parks in the building.

These commercial deals are significant indicators that commercial realty is slowly picking up. Pankaj Kapoor, MD, Liases Foras, a real estate research firm, said, “Due to the stress in commercial office sector, lucrative deals at discounted price are available.”

Earlier big ticket deals

In July 2020, just after the pandemic hit, Morgan Stanley had concluded negotiations and reached a deal to lease up to 1.1 million sq ft office space for 9.5 years from Oberoi Realty in Commerz III, Goregaon. This year too Morgan Stanley leased an additional 3.35 lakh sq ft, according to reports. The total rent is nearly ₹2,000 crore for the entire tenure of 9.5 years.

In July 2020, Godrej Fund Management leased 2 lakh sq ft office space to A.P. Moller – Maersk’s business units in Mumbai. The space is located in Godrej Two, Vikhroli. The lease amount was ₹13.09 crore.