Apple Inc has recently taken on lease for 10 years several floors of a commercial building built by Prestige Estates Projects in Bengaluru at a starting monthly rent of ₹2.44 crore.
Prestige Minsk Square, built last year, is located in the central business district of Cubbon Road in Bengaluru.
According to the registration documents made available by data analytics firm Propstack, the iPhone and iPad maker is occupying three floors and portions of two other floors in the office building, spread over an area of 1,16,888 square feet. The payment of rent commences from July 01, 2023.
Also read: Apple signs 11-year lease for first India store in Mumbai
The rent will be increased at 15 percent after every three years and the period of lock-in is five years for both parties. The company has the option to renew the lease for three additional terms of five years each.
According to reports, the company is planning to use the premises as a global capability centre.
Notably, the company has made it a part of the lease-term that no other competitor will be provided space in the building. The competitors that are specified in the lease deed are—Alphabet (Google’s parent), Microsoft, Samsung, Xiaomi, Amazon, Huawei, Netflix, Facebook, Spotify, Baidu and Tencent.
Last year, JP Morgan said in a report that Apple is planning to manufacture one out of four iPhones in India by 2025, while the production of a quarter of all other products such as iPads, Apple Watches, Airpods and Macs will be moved out of China to other parts of the world, including India.
The Cupertino, California-based company is planning to expand its output from India to 25 per cent overtime from the current 5-7 per cent. To achieve this, Apple will require the support of its global capability centres, which act as centres of excellence and innovation for the company.