KP Tower is part of the 12.5 acres Delhi One project, which was launched by the 3C group and later went into insolvency.
Max Estates, the property arm of Max Group, is in the process of acquiring this prime commercial complex at the Delhi-Noida border through the National Company Law Tribunal (NCLT) resolution process for Rs 550 crore, which will be paid to the debtors in tranches over four years.
There are already four operational towers in the complex; one serviced apartment tower and four commercial towers are under construction.
“Because of its location, which is close to Delhi and Noida Expressway, the rentals here are almost at par with grade A assets in Gurgaon. The remaining part of the project has been taken over by Max Group,” said one person aware of the deal.
Earlier this year, Microsoft had announced the launch of the India Development Centre (IDC) in Noida and had signed an agreement with the UttarPradesh government.
WeWork and Microsoft declined to comment on the deal.
“The deal has been signed at Rs 111 per sq ft, although the rental in Noida ranges between Rs 60-80 per sq ft,” said another person.
Microsoft is also in talks to lease over 1.2 million sq ft office space in Bengaluru.
The company currently occupies 550,000 sq ft in Outer Ring Road, Bengaluru.
Microsoft India has been on an expansion spree and leasing more office space in the last two years to house its growing employee population.
The software giant has operations in 11 cities in India and employs about 8,000 people across the country.
According to property consultants, demand for office spaces in Noida has been on a high growth trajectory after availability dwindled in the national capital.
“Commercial realty market is witnessing an upward trend and more and more buyers and investors are showing their interest in it because the commercial asset class has performed much better than the residential sector over the last few years,” said AjayRakheja, national head, 360 Realtors-Commercial.
Lower rent, new supply and infrastructure development have boosted demand in Noida’s key sectors such as sectors 16 and 62 and NoidaExpressway.