Around 500,000 sq ft office space in Prestige Group’s commercial property in Bengaluru, Prestige Technosta has been leased by US-based multinational semiconductor company Advanced Micro Devices (AMD) Prestige Technostar and is one of the largest office deals in the southern market in 2022.
AMD is planning to use the new office space to expand its operations in the city and is expected to be operational by the end of 2022.
The lease has been signed for a period of 10 years by the company. The deal has been registered and it’s a single-tenant deal. A source who is aware of the deal has revealed that the company will be paying a rent of Rs 54 per sq ft.
In the lease deed shared by Propstack, a rent of around Rs31.5 crore will be paid annually by AMD. Prestige Constructions has many properties upcoming, one of which is prestige elm park in Whitefield, Bangalore.
Currently, AMD is operating at multiple locations in Bangalore, which includes one of prestige’s existing properties. This deal shows the interest shown by large corporations in office spaces in Bangalore. The transaction adviser of the deal, Cushman & Wakefield has refused to comment.
The Prestige group has 43 million sq ft of ongoing along with upcoming projects with which it is looking to strengthen its portfolio in the commercial sector across major cities like Pune, Bengaluru, and Hyderabad.
Over 1.5 million sq ft of office space has been leased by the firm from the beginning of this year to technology and Edtech firms like HP and BYJU’s that closed earlier this year.
It is expected that the leasing activity would strengthen further in the upcoming quarters, due to a combination of pent-up demand, expansion, and consolidation-led leasing. As the occupiers have started realigning their post-pandemic strategies.
A pre-Covid momentum is expected in the office segment in the next few quarters as the economy of India strengthens.
Shishir Baijal, chairman and managing director, Knig said that for the past eight quarters there is a significant increase in hiring and pent-up demand. This is expected to drive the volumes in a reminder of the year. Read More