Properties in Gurugram
The Disney brand in India has made an interesting choice of action, as it goes for some prime office space at a location known to have a fiercely competitive office market environment — and not just any office space but a sizable area too. The corporate entity has signed up for a multi-year lease covering 1,74,959 sq ft of office space located in the Bellandur locality of Bengaluru city.
The office space includes the sixth and seventh floor of RMZ Ecoworld Series 20, a Grade A commercial complex owned by Vismaya Infrastructure. The office space lease was effective from February 1st, and financial details of the agreement can be seen via the Propstack database on real estate data analytics.
What the Deal Looks Like on Paper
The rental amount charged by Disney India amounts to roughly Rs 2.01 crores every month, which translates into Rs 115 per square foot per month. This rental amount takes into consideration the premium positioning of the building within one of the highly demanded office zones in Bengaluru. Considering the total period of five years along with 15% escalations in rental charges for the next two years after the initial three years of agreement, Disney’s total rental cost for the entire tenure would come to around Rs 127.84 crores. A security amount of Rs 12.07 crores has been deposited against this agreement.
It must be noted that this is not an agreement for lease renewal but represents a new lease contract that indicates a future-looking business strategy.
Disney India did not make any comments when contacted regarding this agreement.
Why Bellandur Keeps Winning
If you have followed the trends of the Bengaluru office space, you won’t be surprised by how high the prominence of Bellandur as an upscale office space has grown. With its location on the ORR corridor, it finds itself in the middle of one of the largest clusters of tech businesses in the city, where it is complemented by lifestyle elements and a workforce that companies aggressively recruit.
This is especially true of Disney India, which, being in the business of producing content and developing the platforms through which it engages consumers, requires proximity to tech talent and a community of peer organizations that operate in complementary industries to get the job done.
And with the abundance of Grade A office space in Bellandur that meets institutional standards of development, companies don’t need to uproot themselves in order to scale operations. This is exactly what Bellandur offers, including RMZ Ecoworld Series 20.
Bengaluru’s Office Market Shows No Signs of Slowing
This deal provides another impetus to a very active year for office leases in Bengaluru. Bangalore continues to lead India in office space absorption, thanks to a varied mix of occupiers that range from international tech giants to engineering firms to a growing number of global capability centers (GCCs) establishing themselves in India.
What is interesting is the quality of these deals – large, long-term, and high-value deals. The deals speak not only about the existing demand but are a testament to how well-placed India’s future looks in terms of its business growth potential. The most recent addition to the list is Disney India’s Bellandur office deal.
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