Apple Inc has agreed to lease an entire office tower from property developer Embassy Group in Bengaluru, said people with direct knowledge of the development.
The maker of iPhones and iPads will pay more than ₹220 per sq ft a month for the office space covering more than 400,000 sq ft in the city’s Sankey Road, setting a record for the office property market in India’s Silicon Valley, the people said.
This will be the US technology giant’s latest addition to its corporate office footprint in India spanning Bengaluru, Mumbai, Hyderabad, and Gurugram.
“A letter of intent (LOI) to lease the tower was inked recently, and the deal will be registered soon. As per the terms, the lease rentals will see an escalation of 15% every three years,” said one of the persons cited above.
Apple’s new office space in Bengaluru is part of a commercial project being built on a nearly 2.3-acre land parcel that earlier housed the Le Meridien hotel overlooking the Bangalore Golf Club and Cubbon Park.
The Embassy Group acquired the hotel a few years ago. The project comprising two basements, a ground floor, and 13 upper floors will cover 30,000 sq ft. “This is Apple’s second-largest facility in Bengaluru. The property will soon go under fit out and will be operational by 2025,” a second person said.
Embassy Group declined to comment while Apple did not respond to an email query.
In 2021, Apple signed a lease deal for more than 400,000 sq ft in Bengaluru with the Prestige Group to house employees catering to its Indian and global operations, as well as an experience centre. The property can be renewed for three additional terms of five years each, with no competition allowed in the building like Alphabet, Microsoft, Samsung, Xiaomi, and Amazon.
Media reports said Apple is strategically expanding its manufacturing operations in India to achieve its target of producing 25% of all iPhones within the country over the next 3-4 years. This expansion involves setting up a local supplier network to cut reliance on Chinese vendors.
Currently, most iPhones produced in India are made in the Sriperumbudur plant near Chennai.
To support this expansion, Apple is in the process of building supply chains, with major production handled by Foxconn Technology Group and Tata Electronics, both of which will be ramping up their manufacturing capabilities. Notably, Tata Electronics will be operating one of the largest facilities for iPhone manufacturing in India, located near Bengaluru, in Hosur.
