According to recent reports, Apple has secured a commercial space of up to 116,000 sq ft on Cubbon Road in Bengaluru on a 10-year lease.
The monthly rental amount for the property is Rs 2.43 crore.
Keep reading for more details!
Apple Leases 1.16 Lakh Sq Ft Commercial Space
As per the lease agreement, the company has rented out the complete fourth, sixth, and seventh floors of Prestige Minsk Square, a commercial building developed by Prestige Estates Projects.
Additionally, they have also leased a portion of the seventh, eighth, and ninth floors.
The rental rate per square foot is mentioned as Rs. 195 in the documentation, with a monthly car parking fee of Rs. 16.56 lakh.
The lease agreement specifies that the fit-outs began on November 28, 2022, while the rent will commence from July 1, 2023.
The lease agreement was signed by Apple India, Prestige Estates Projects, and Mohammed Musa Sait Waqf.
As per records, the developer and Musa Sait Wakf, a private wakf, had signed a contract on April 20, 2017, for the construction of a 14-story, three-basement commercial skyscraper.
Every Three Years, Rent To Increase by 15%
According to the lease agreement, the rent will increase by 15% every three years.
Furthermore, the company has the option to extend the lease for three additional terms of five years each.
Apple’s first physical store in India will be launched in Mumbai, where the company has leased over 20,000 square feet of retail space across three floors in a mall at Bandra Kurla Complex (BKC).
As per registration records reviewed by Propstack, the lease includes a minimum guaranteed rent of nearly Rs. 42 lakh per month.
“In December 2022, Apple exported iPhones worth Rs 8100 crore, contributing significantly to the overall industry exports of smartphones which reached Rs 10,000 crore.”
Apple is manufacturing multiple iPhone models such as iPhone 12, 13, 14, and 14+ in India through its three contract manufacturers, namely Foxconn Hon Hai, Pegatron, and Wistron.
Mobile Phones Export & Govt PLI Scheme
“The Apple’s contract manufacturers, including Foxconn Hon Hai, Pegatron, and Wistron, are situated in Tamil Nadu and Karnataka and are part of the Indian government’s Production-Linked Incentive (PLI) scheme for smartphones, which began in April 2020.”
The Indian government’s Production-Linked Incentive (PLI) scheme has the objective of transforming India into a manufacturing hub for smartphones and other electronic goods.
The scheme mandates that manufacturers provide regular updates on their production, exports, investments, and employment to the government.
