IBM India leases 2.83 lakh sq ft at Bagmane Solarium City in Bengaluru for 10 years
IBM India has leased 2.83 lakh sq ft of office space at Radon tower in Bagmane Solarium City, Bengaluru, for 10 years. The total estimated rental and fit-out outgo is Rs 522 crore, with a monthly base rent of Rs 2.49 crore and a 15% escalation every three years.
IBM India has leased over 2.83 lakh sq ft of office space at Radon tower in Bagmane Solarium City, an IT park in Bengaluru, for 10 years, with the total rental and fit-out outgo estimated at Rs 522 crore over the tenure. The company entered into a lease agreement with Bagmane Group company Akruthi Infra-Build Developers for premises spanning the ground floor and three upper floors of the building.
IBM India will pay a monthly base rent of Rs 2.49 crore, at a rate of Rs 88 per sq ft, translating into a total rental outgo of around Rs 343 crore over the lease tenure, according to registration documents accessed through realty data analytics platform Propstack. The lease provides for a 15% escalation in rent every three years, a standard feature of long-term commercial office leases. The company has also paid a security deposit of Rs 14.96 crore for the premises.
In addition to the base rent, IBM India will pay fit-out rent of Rs 2.98 crore per month for five years, until March 2031, amounting to around Rs 179 crore. Fit-out arrangements typically cover the cost of preparing and equipping office premises for occupation, although the specific terms depend on the agreement between the landlord and tenant.
The transaction adds to the large-office leasing activity by multinational companies in Bengaluru, one of India’s key technology and office markets. Bengaluru continues to attract companies seeking large office facilities to accommodate their workforce and consolidate operations, while established business parks provide access to office infrastructure and supporting amenities.
ET’s separate email queries to IBM India and Bagmane Group remained unanswered at the time of going to press.
