Amazon Development Centre (ADC) has taken on lease 1.94 lakh square feet of space in Pune at a monthly starting rental of ₹75 per square feet, registration documents showed.
The effective rent translates to just over ₹ 1.5 crore a month.
Amazon lease agreement
Amazon has leased the first four floors of a building with 205 car parking slots. The lease term is for five years and after the initial 36 months, rent escalates 15 per cent annually. The rent commences from February 16, 2023. There is a 36-month lock-in period, and the lease can be renewed for five more years, but at a higher rent to be decided at that time.
The building Gera Commerzone R3 in Kharadi , built by K Raheja Corp, consists of 13 office floors and top five floors of podium parking.
Amazon has multiple entities operating in India including Amazon Cloud Services, Amazon Seller Services, Amazon Fulfillment Services and Amazon Development Center.
ADC develops technology products and also includes its text-to-speech software that is part of the voice user interface for mobile devices.
The new lease by the e-commerce giant comes at a time when it has reportedly sacked about 1,000 employees in India. It also laid off 18,000 people globally. Across different entities, it employs about 1 lakh people in India.
“In many ways, this expansion shows Amazon’s long-term intent in India and will result in a significant number of new roles in challenging macro business environment,” said Raja Seetharaman, co-founder of data intelligence platform.
The company has invested over $6 billion in India over the last eight years and last year it re-iterated its commitment to the Indian market. Last week, Amazon Web Services announced an investment of over ₹36,000 crore in data centres, an accession by 2030 in Telangana.