An approximately 200,000 square-foot office building in Pune’s Kharadi neighbourhood’s Gera Commerzone information technology (IT) SEZ has been leased by e-commerce giant Amazon’s software & support services company.
The company has agreed to lease the four-story office space for a period of ten years at a total cost of approximately Rs 208 crore, including rental increases.
A provision in the agreement calls for a 15% increase in monthly rent after each and every three years. As a tenant, Amazon Development Center (India) would likewise have a three-year lock-in period.
A joint venture between Mindspace Business Parks REIT, a listed investment trust for real estate (REIT) owned by K Raheja Corp., and Pune-based builder Gera Developments is known as Gera Commerce. The project spans 25.8 acres and has a net leasable area of about 3 million square feet, of which 50% has been delivered and leased and the other 1.5 million square feet is still being built.
Business Parks in Mindspace To construct this project, REIT and Gera Developments formed a joint venture. So far, these firms have leased office space to well-known multinational corporations like British Petroleum, Barclays, Mindcrest, UPS, Maveric, and Allstate.
According to the paperwork retrieved by Propstack, Amazon Development Center paid Rs 1.79 crore in stamp duty for the leasing transaction that was completed and registered on January 13.
The worldwide operations of the Amazon Development Center span several cities in India, including Bengaluru, Chennai, and Hyderabad.
The pandemic-significantly hit commercial office segment has made a remarkable comeback in the past three to four quarters, helped by robust economic growth, increased hiring, and a return to the office trend that has kept the office sector afloat.
All markets experienced stable or rising office rental levels during the time, making this the second consecutive year that this has happened since the first half of 2019. The office markets in Bangalore and Pune expanded the fastest in the second half of 2022, at 11% and 7% on-year growth, respectively.
