Amazon Data Services India has leased four acre of land at Powai from Larsen & Toubro (L&T), taking the total space for their business to 9.5 acre.
Amazon Data Services, is an arm of multinational Amazon Inc involved in the data centre business.
As per the documents accessed through CRE Matrix, a real estate data analytics firm, a total of 1.74 lakh sq. ft. of freehold industrial land has been leased for Rs 2.59 crore per month or Rs 65 lakh per acre per month or Rs 149 per sq. ft.
The lease agreement was registered on August 3 and a security deposit of Rs 2.40 lakh is involved for the land parcel. It has been leased for a duration of almost 18 years, which is till August 2043. According to the contractual obligations, the handover date of the plot from L&T is between April 2025 and March 2026.
For these four acres, Amazon Data Services will pay a premium of Rs 18 crore per acre, which works out to be Rs 72 crore for four acres.
Last year, the same two companies had entered into a lease transaction for 5.5 acres of land in Powai itself. The deal was for a period of 21.5 years of lease for which Amazon will be paying rent of over Rs 921 crore over the lease tenure with the rental escalation clause of 3% annually. This land parcel is adjacent to the one rented earlier this month.