BENGALURU: Samsung Research and Development Institute India-Bangalore (SRI-B) has renewed its lease for 420,000 square feet of office space in Bengaluru with Bagmane Developers for a duration of five years.
The lease, which started in June this year, includes a lock-in period until April 2027.
According to a lease renewal deed shared by analytics firm Propstack, the firm will pay an annual rent of ?50 crore, with a 5% yearly escalation. This translates to ?102 per square foot per month.
The company occupies the basement, ground, and ten floors, including some of the upper portion of the 11 floors in the property leased in 2019, which expired in April 2024.
Samsung did not reply to an email query shared by ET.
“Vacancy rates for Grade A office spaces are increasing in most global cities, but India is experiencing an opposite trend. This is likely due to growth in the GCC, BFSI, and flexible office sectors. Recently, Mumbai saw one of the highest rent deals ever in India, and Bangalore is witnessing numerous large transactions,” said Raja Seetharaman co-founder Propstack.
SRI-B is Samsung group’s largest R&D centre outside of South Korea and serves as a pivotal innovation hub along with Samsung Semiconductor India Research.
SRI-B’s role within the Samsung group is twofold: firstly, to establish unique selling propositions for global flagship devices through significant advancements in modern, multimedia, AI, and Internet of Things, and secondly, to address the specific needs of Indian consumers, the company said.
Earlier this year, Samsung Semiconductor India Research (SSIR) secured a 160,000-sq ft R&D facility in Bengaluru to advance semiconductor research and development in India and to support the company’s expanding requirements for sophisticated infrastructure.
SSIR is currently operating with a workforce of more than 4,500 employees and plans to expand its team by over 700 individuals.
Bengaluru has led office space absorption in the country so far this year, accounting for about one-fourth of the total leasing during January to June 2024, followed by Delhi-NCR at 16%, Chennai at 14%, and Pune and Hyderabad at 13% each. Bengaluru, Hyderabad, and Mumbai led supply additions, collectively accounting for 69% of the total in the same period, according to CBRE.
Source Homevior.in
