Pidilite Industries has picked up an entire 10-storey commercial tower Opus Prime at Santacruz Special Economic Zone (SEEPZ) in Mumbai through a long-term lease of five years. The company has entered into an agreement with the property owner Beekalene Fabrics for the same and will be paying a monthly rental of Rs 1.80 crore taking its total pay-outs to Rs 119 crore across the total tenure of the lease including the escalation in rentals.
The agreement includes a clause to escalate the rentals by 5% at the end of every 12 months. The company has already paid the property owner a security deposit worth Rs 10.80 crore. As a part of the agreement, Beekalene Fabrics is not allowed to terminate the lease until its tenure comes to an end, while Pidilite will have a lock-in period of 36 months.
The lease will be in effect from the rent commencement date of January 1, 2023, until 31, December 31, 2027. The transaction was registered on September 2. “We regularly keep looking for office space requirements in line with our business needs and have leased an additional office space close to our corporate office in Andheri,” Pidilite Industries said.
As a part of the lease agreement, this specialty chemicals company operating in construction chemicals and sealants will get exclusive access to a total of 128 car parking slots including 118 in the parking tower.
The Project Opus Prime is built on the two plots assigned by the Maharashtra Industrial Development Corporation (MIDC) to Bombay Knitting, now known as Beekalene Fabrics through 95 years of a lease starting between g 1974 and 1977. The property owners obtained the occupancy certificate of the building from MIDC in December 2021.
According to the agreement, the MIDC subletting and sub-licensing charges of the said premises will be borne by the property owner, Beekalene Fabrics. Office Demand in suburban locations or secondary business districts has been outpacing that in the central business districts across India’s major markets.