Vikram Solar Limited, a solar photovoltaic (PV) module manufacturers, has leased 5.73 lakh sq ft of industrial space at Indospace Park Vallam II in Chennai for a period of five years at a total rent of ₹93 crore, according to property registration documents accessed by Propstack.
The lease was signed with Indospace Vallam II Pvt Ltd, involves a chargeable area of 573,314 sq ft and a carpet area of 504,606 sq ft.
The fresh lease commenced on June 12, 2025, with the company agreeing to pay a monthly rent of ₹1.53 crore at a rate of ₹26.75 per sq ft per month. The transaction also involves a security deposit of ₹9.20 crore and a lease tenure of 60 months.
According to the lease terms, Vikram Solar will receive a three-month rent-free period. Accounting for this concession, the total net rent payable over the five-year lease period works out to approximately ₹93 crore, based on the rent calculation provided. The company will pay rent for nine months in the first year, followed by payments for the remaining four years, according to the documents.
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{{/usCountry}}The lease agreement also provides for a 15% escalation in rent at the end of the third year, followed by an annual escalation of 5% thereafter. This means the rental outgo will increase during the final two years of the lease period in accordance with the agreed escalation structure, the documents show.
"Vikram Solar’s transaction with IndoSpace at Vallam II illustrates how India’s clean-energy momentum is driving large-scale industrial real estate absorption. High-spec manufacturing demands institutional-grade infrastructure—from specialized power loads to strict ESG compliance. As domestic leaders like Vikram Solar scale capacity, institutional developers like IndoSpace provide the turnkey environments critical to compressing setup timelines. This deal also further cements Chennai’s position as a premier hub for green-tech and clean-energy manufacturing," said Raja Seetharaman, cofounder Propstack.
Vikram Solar and Indospace Park could not be reached for comment.
Vikram Solar is among India's established solar photovoltaic module manufacturers, with its business focused on the production of solar modules. The company's requirement for industrial space comes amid the expansion of India's solar manufacturing ecosystem, supported by the country's broader push to increase domestic renewable energy capacity and manufacturing capabilities.
Indospace Park Vallam II is an industrial and logistics park located in Chennai. The lease adds to the activity in the city's industrial real estate market, where demand for large-format facilities is driven by manufacturing, logistics and allied businesses.