Samsung leases 357K sq ft Noida Brookfield floors for ~2 cr/month
This is one of the biggest office leasing deals in the technology space in recent years
In one of the biggest office leasing deals in the technology space in recent years, South Korean electronics major Samsung has taken 357,000 sq ft in Noida where it will pay a rent of ~278 crore for 10 years or about ~2 crore every month.
It has taken 10 floors at building 11, Infospace, in Sector 135 that is owned by Canada’s Brookfield. The lease period is 10 years.
Samsung will pay a rent of ~1.94 crore a month for the first three years and see around 15 per cent escalation every three years. At ~55 per sq ft per month, the deal is aligned with market rates, said experts.
The company has paid a security deposit of ~17.53 crore, according to data retrieved by property data analytics firm CRE Matrix. Samsung has taken 503 car parking lots as part of the deal.
According to sources, the electronics major has taken the space for its mobile research and development (R&D) centre.
Samsung has three R&D centres in the country, including in Noida and Bengaluru. Its headquarters is in Gurugram.
In 2016, it leased 350,000 sq ft space in DLF’S Two Horizon Centre, which is its headquarters.
Mails sent to Samsung did not elicit any response. A Brookfield spokesperson said it is unable to comment.
“The deal checks all the green boxes for the office sector — a blue chip tenant picking up a large space in a grade A+ building, on the Noida Expressway at an appropriate market rental. This clearly shows Noida’s resilience as the city continues to attract large developers and tenants on the back of improved infrastructure and connectivity. This is surely great news for Noida developers and we expect more such marquee deals to close before year-end,” said Abhishek Kiran Gupta, chief executive officer (CEO) at CRE Matrix.
Many technology companies have taken space on lease in recent months as the second wave of the pandemic subsided in the country.
A total office absorption of 25 million sq ft is expected this year against a supply of 35 million sq ft, Colliers said. Recently, EY Global Delivery Services, part of EY, leased 115,000 sq ft in Advant Navis Business Park in Noida.
Us-based Apple renewed its lease for 15,925 sq ft of commercial space, spread across three floors of Agni Commex in Mumbai for a period of almost five years, reports said recently. Samsung Electronics, the world’s largest chip maker, recently said it will invest 240 trillion won ($206 billion) in the next three years to expand its footprint in biopharmaceuticals, artificial intelligence, semiconductors and robotics.