reit: Embassy OfficeParks REIT leases office space to Nokia

reit: Embassy OfficeParks REIT leases office space to Nokia

India’s first listed REIT, Embassy OfficeParks REIT has leased around one million q ft of office space in Embassy Manyata Business Park, Bengaluru to Nokia Solutions and Networks India Private Limited (“Nokia India”), Indian subsidiary of the Finland based telecom giant Nokia.

According to sources in the market, Nokia has a presence in the business park for around a decacde and had a portion of its lease agreement getting expired. “The renewal will see Nokia paying a rent of around Rs 95 per sq ft instead of Rs 68 earlier. The deal includes a ten years lock-in from the date of renewal,” said one of the source.

“Nokia India has exited the landlord portion of the lease and has consolidated in Embassy REIT’s Manyata property, ” said another source having knowledge of the deal.

Embassy REIT did not share the details of the transaction.

“We are delighted to extend our decade long relationship with Nokia and are grateful for the strengthened partnership. This deal underscores Embassy REIT’s position as the landlord of choice for top Indian and multinational corporates. Driven by global technology trends and enhanced wellness requirements, International occupiers in India are anticipating the next phase of growth; and we believe that the Indian office market remains best positioned to benefit from this clear trend, ” said Vikaash Khdloya, Deputy CEO and COO of Embassy REIT.

Embassy Manyata is one of the largest business parks in India, with an operational area of around 12 million square feet. Spread over 121 acres, Embassy Manyata is an integrated business park with commercial, retail, planned hospitality spaces and is located on the Hebbal Outer Ring Road, the epicentre of Bengaluru’s Northern corridor. The office parks in Bangalore hosts tenants such as IBM, Cognizant and ANSR.

Co-sponsored by the Blackstone Group and Embassy Group, Embassy Office Parks REIT is India’s first REIT was listed in April 2019.

Lease transactions for large office spaces are being registered across crucial property markets led by steady economic recovery, aggressive vaccination drive across the country and a rising number of corporates planning the return of workforces to offices.

Companies like Google, Intel Technology, ABB and WeWork have concluded and registered over 15 leases for offices spread across more than 1 lakh sq ft each, totalling 3.6 million sq ft in the last four months

Embassy REIT owns and operates a 42.4 million square feet portfolio of eight infrastructure-like office parks and four city-centre office buildings in office markets of Bangalore, Mumbai, Pune, and the National Capital Region.

Its portfolio comprises 32.3 million sq ft completed operating area and counts over 190 global companies as occupiers.

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