Siemens Technology leases 7.27 lakh sq ft office space in Bengaluru – ET RealEstate

BENGALURU | MUMBAI: In one of the largest real estate leasing transactions so far this year, Siemens Technology and Services has leased 727,000 sq ft in Electronic City, Bengaluru, three persons with direct knowledge of the development told ET.

The subsidiary of German engineering conglomerate Siemens will pay a rent of Rs 80 per sq ft for the new office space at Gold Hill Excelsior business park, one of the persons said. The nine-year lease term will start from March next year. The rent will be increased 8% annually for the first two years and thereafter by 5% every year.

The office can accommodate 7,000 employees and will be utilised to consolidate and expand Siemens Technology and Services’ operations in Bengaluru, the sources said.

The information technology and management services company currently has around 4,500 employees in Bengaluru.

Siemens Technology and Services did not respond to ET’s emailed queries as of press time Tuesday.

The company has offices in Bengaluru, Chennai, Gurgaon, Noida and Pune.

Its research in digitalisation and automation team based out of Bengaluru focuses on affordable healthcare solutions, automation engineering, embedded systems, energy systems, software technologies, and water technologies.

Following the sluggish leasing environment due to the outbreak of Covid-19, the office segment has started seeing some traction in the third quarter with Bengaluru, Mumbai and Delhi-NCR leading the activity.

“Office leasing has been more resilient than many had expected,” said Raja Seetharaman, director at real estate data solutions platform Propstack. “Many companies are consolidating their multiple offices into a single large office. This works well when companies follow a portfolio consolidation approach as well as a hub and spoke model. The leasing activity is also driven by an expected short supply of quality space in the near term due to delay in ongoing projects and lack of new projects,” he said.

Multinationals including Apple, WellsFargo, Google, Walmart, Amazon and Microsoft have either leased or are in the process of leasing large office spaces across Bengaluru, Hyderabad and Chennai for future growth.

The total office transactions of top eight Indian markets have improved and reached 33% of the 2019 quarterly average level during the September quarter, according to a Knight Frank report.

Bengaluru, Hyderabad and Chennai have seen rentals inching upward by 0.5% to 4% during the quarter. However, rentals across bigger markets like Mumbai, NCR, Kolkata and Ahmedabad have declined in the range of 1-6%, while Pune has seen flat growth.

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YEIDA to get Rs 4,000 crore loan for acquiring land, infrastructure projects – ET RealEstate

NOIDA: The state-owned Housing and Urban Development Corporation (HUDCO) on Wednesday signed a memorandum of understanding (MOU) with the Yamuna Expressway Development Authority (YEIDA) to lend the authority Rs 4,000 crore over a period of three years.

YEIDA officials said this amount will be utilised for land acquisition in areas around the upcoming Jewar airport, development of industrial estates, Electronic City and housing projects, as well as for associated infrastructure development of other urban facilities on both sides of the Yamuna Expressway. This development will optimise usage of adjoining areas adjacent to the upcoming Jewar airport and insulate the airport buffer areas against encroachment, sources said.

The MOU has been signed between YEIDA chief Arun Vir Singh and HUDCO chairman and managing director M Nagaraj. Land acquisition will be done in 1,187 villages which have already been notified by YEIDA, starting from Gautam Budh Nagar, Bulandshahar, Aligarh, Mahamaya Nagar (Hatras), Mathura and Agra. The development plan has been chalked out for completion within three years.

“Unlike other airports, which soon face issues of encroachment after coming up, we will develop the adjoining areas for productive use. The entire project cost may go up to Rs 8,000 crore. The HUDCO loan will help us finance it partially and we will generate the remaining amount from our resources. The main purpose of the funding is the execution of the construction of Yamuna Expressway, acquisition of land and area development,” Singh told TOI.

A zonal plan has already been created, according to which four sectors will be developed around the upcoming Jewar airport to help build facilities to support the airport. Development of drainage, feeder roads, electrification, and other facilities in the area will also be supported by this fund.

“The development plan will be submitted to HUDCO after approval of the NCR planning board. They will release the funds in three phases. The project development will start after the land purchase,” Singh said.

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