Amazon Data Services, L&T ink over 18-year lease for 4-acre land in Mumbai’s Powai
Amazon Data Services India has picked up a land parcel spread over four acres in Mumbai’s Powai suburb from engineering and construction major Larsen & Toubro through a long-term lease of nearly 18 years. The subsidiary of Amazon is planning to develop a data center on this land parcel for which it will be paying rent of over Rs 562 crore over the total lease tenure excluding the rent escalation. The agreement includes a clause to escalate lease rental by 3% every year.Amazon Data Services India has already paid a security deposit worth Rs 2.40 crore to Larsen & Toubro.
It has agreed to pay a premium of Rs 18 crore per acre aggregating to Rs 72 crore to the landlord. As per the lease agreement, Amazon will get a rent-free period of 24 months spread across the tenure of total lease including the first six months from the lease commencement date. The lease tenure includes a lock-in period of 180 months or 15 years for the lessee and entire lease term for the landlord.
The deal was registered on August 3, showed documents accessed through CRE Matrix. Last year too, Amazon had inked an agreement with L&T to lease an adjacent 5.5-acre land parcel for 21.5 years for total lease payment of Rs 921 crore excluding 3% annual rent escalation. The latest transaction pushes the total rental payment for the entire 9.5-acre land parcel across both the plots to nearly Rs 1,500 crore across the lease tenure.
The Handover date for the 4-acre land parcel leased through the latest transaction is between April 2025 to March 2026, while the expiry date of the lease is noted as 15th August 2043. ET’s separate email queries to both Larsen & Toubro and Amazon India remained unanswered until the time of going to press. In October, Amazon Data
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