In a recent and noteworthy development, Amazon Data Services Pvt Ltd, a subsidiary of the globally recognized Amazon Group, has successfully finalized a substantial land lease agreement with Larsen and Toubro Ltd (L&T). This agreement centers around a significant portion of industrial land, spanning an approximate area of four acres or roughly 16,187.40 square meters, strategically located in Tungwa village within the Powai region.
Lease Terms and Commencement
Under the terms of this comprehensive lease agreement, Amazon Data Services Pvt Ltd is set to pay a monthly rent of ₹2.60 crore. This substantial lease arrangement is scheduled to extend over a remarkable period of 18 years. The lease duration is slated to begin its countdown from the month of April in 2025, with the lease agreement projected to remain in effect until August 15, 2043. These crucial details were officially documented in the agreement, which was formally registered on the 3rd of August.
Disclosure by Real Estate Analytics Firm
The details of this significant transaction were brought to public attention through the revelation made by CRE Matrix, a renowned and reputable real estate analytics firm. The documentation pertaining to this agreement, accessed by CRE Matrix, has shed light on the intricate terms and conditions that have been agreed upon by the involved parties.
Premium Payment and Land Preparation
As an integral component of this transaction, Amazon Data Services Pvt Ltd is committed to a premium payment of ₹18 crore per acre. This premium payment, which aggregates to a substantial ₹72 crore for the entirety of the four-acre land parcel, is slated to be made as the lease commencement period takes effect. It has been outlined that the responsibility for the preparation and clearance of the land rests squarely on the shoulders of Larsen and Toubro Ltd. According to the documents, L&T has committed to the handover of the prepared land within the timeframe spanning from April 1, 2025, to March 31, 2026.
Security Deposit and Earlier Lease Agreement
Additionally, the agreement has stipulated a security deposit amounting to ₹2.40 crore. This deposit is earmarked for return to the lessees at the formal initiation of the lease.
This venture is not the inaugural collaboration between Amazon Data Services Pvt Ltd and Larsen and Toubro Ltd. In a previous instance, which took place in August 2022, the Amazon subsidiary secured a lease for 5.5 acres of industrial land from L&T. This earlier agreement had been orchestrated with the aim of establishing a data center. It is important to note that both of these land parcels form part of a larger landholding spanning 58.06 acres, which is under the ownership of Larsen and Toubro Ltd and is strategically located within the Powai vicinity.
Strategic Move for Amazon Data Services Pvt Ltd
This strategic land lease agreement underscores Amazon Data Services Pvt Ltd's commitment to expanding its operations and solidifying its presence within the industrial landscape. The move aligns with their ongoing initiatives and investments in data centers and related infrastructure, marking a significant step towards their overarching goals.
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