Eicher Motors Limited, the maker of Royal Enfield motorcycles, has leased 3.92 lakh sq ft of industrial space at Casagrand Industrial Park in Sriperumbudur, near Chennai, for seven years at a monthly rent of nearly ₹82.45 lakh, according to documents accessed by Propstack.
The property is owned by Casagrand Blue Horizon Private Limited.
The lease is expected to commence on August 31 while the rent payments will begin from May 2027. The per sq ft rent is Rs. 21.06 per sq ft per month. The tenant has paid a security deposit of Rs. 5.24 crore, the lease deed showed.
The rent and maintenance fees are subject to an annual escalation of 3.5% every year after completion of two years, the documents showed.
The lease deed was registered on July 31, 2026.
According to Raja Seetharaman, co-founder of Propstack, Eicher Motors' commitment to a long-term 7-year lease at Casagrand Industrial Park underscores robust demand for Grade-A industrial assets, driven by India’s automotive and manufacturing expansion. Prime logistics and industrial hubs like Sriperumbudur continue to command high tenant retention and consistent capital allocation.
Sriperumbudur has emerged as an important manufacturing and industrial hub that has attracted investments from auto, engineering and manufacturing firms.
{{/usCountry}}Sriperumbudur has emerged as an important manufacturing and industrial hub that has attracted investments from auto, engineering and manufacturing firms.
{{/usCountry}}Queries have been emailed to Eicher Motors. The story will be updated if a response is received.
In 2025, the real estate developer Casagrand's warehousing and industrial parks division announced a strategic co-development deal with private equity major Blackstone for two industrial and logistics parks at Sriperumbudur, near Chennai, spanning 4.2 million square feet on a 154-acre land parcel. Blackstone was to invest around ₹700 crore towards building the facilities, expected to be ready for operations in about 30 months.
The company had then said that part of the facilities to be built had already received pre-leasing commitments, with automobile giant Eicher Motors slated to use around 400,000 square feet as an auto spare parts consolidation facility for its Royal Enfield brand of premium motorcycles. The space is also expected to attract a mix of global and domestic occupants, it had said.
Casagrand Industrial & Warehousing has already delivered 6 million sq ft and is executing a 15 million sq ft pipeline. The state’s industrial growth, primarily driven by electronics, automotive and export-oriented manufacturing, has accelerated the need for high-specification logistics and Industrial infrastructure, the company had said.
According to the Cushman & Wakefield MarketBeat report, Chennai's warehousing market saw a robust 2.3 million sq ft of leasing in H1-26, recording a 10% YoY increase and 1% growth over H2-25. Industrial leasing surged to a record 3.8 mn sq ft, the highest ever recorded for any half-year, accounting for nearly 63% of the overall leasing activity. In H1-26, industrial leasing volume grew by 79% compared to H2-25 and by 64% YoY.
Other industrial leasing deals in Chennai
Strengthening its supply chain footprint in South India, Zomato parent Eternal's business-to-business grocery supply arm, Hyperpure, recently leased over 3.5 lakh sq ft of warehousing space in Chennai on a lease of more than nine years. The facility has been taken at a monthly rent of ₹87.46 lakh, according to property documents accessed by Propstack.
The warehouse is located at Hiranandani Industrial Park, Redhills, along Periyapalayam High Road. The property has been leased from Jurojin Developers Private Limited, as shown in the leave and licence agreement. The lease commenced on March 30, 2026, with the rental working out to ₹25 per sq ft per month. Zomato Hyperpure has also paid a security deposit of ₹3.5 crore, according to the documents.
As per the agreement, the monthly rent will increase by 5% annually over the lease tenure.
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Last year, DHL Supply Chain India Pvt Ltd leased approximately 4.28 lakh sq ft of warehouse space in Chennai for a monthly rent of ₹96.64 lakh in Indospace Industrial & Logistic Park, Vishnuvakkam, registration documents accessed by Propstack showed.