Bosch leases 2.5 lakh sq ft office space in Hyderabad

Bosch has leased around 2.5 lakh sq. ft. office space in Hyderabad to expand its operations in one of the largest office lease deals in the city in recent times. The new facility is at Sattva Group-owned office park-Knowledge city.

“The software major will be paying a rental of around Rs 120 per sq. ft or around Rs 30 crore annually. The lease term has a five-year lock-in period with a 9-year lease,” said three people aware of the deal.

“The facility can seat around 3000 employees and will go live by year end,” said a source quoted above.

In India, Bosch is a leading supplier of technology and services in the areas of mobility solutions, industrial technology, consumer goods, and energy and building technology. Additionally, Bosch has, in India, the largest development centre outside Germany, for end-to-end engineering and technology solutions with close to 15,650 research and development associates.

Bosch is expanding its IoT activities in India by transforming its headquarters in Adugodi, Bengaluru, into a new smart campus called Spark.NXT.

Over the last five years, Bosch has invested Rs 800 crores in developing the campus, which can potentially house 10,000 associates. The 76-acre site is Bosch’s first smart campus in India and features multiple smart solutions based on sustainability, security, and user experience for associates, visitors, and facility management.

Sattva Group has signed around 2 mn sq ft of office space in the first half of 2022 and expects to double it by the end of this year. The company currently has 12 mn sq ft of office space under construction across Bangalore and Hyderabad.

Salarpuria Sattva Knowledge City is located in Hyderabad’s dedicated information technology (IT) zone – HITEC city and is one of the biggest IGBC-certified platinum-rated green buildings, which has emerged as one of the key parameters for global occupiers.

According to the industry, the Indian office space has seen some large deals being closed recently with Bangalore leading the office leasing in the first half of this year. The IT/ITeS segment saw its share rise to 33% from 25% q-o-q, clearly outlining its continued dominance as the most prominent occupier segment in India’s office sector. Some large companies that have leased larger office space recently include GoldmanSachs, Cognizant Technologies and Infosys amongst others.

According to JLL, gross leasing volume (GLV) for Q2 2022 was recorded at 14.29 mn sq ft, up by 36% q-o-q and second only to Q4 2021 in the past 9 quarters. On a half-yearly comparison, GLV at 24.77 mn sq ft during H1 2022 was up nearly 2X y-o-y and over 80% of the H1 2019 numbers, signalling a steady yet sustained recovery in office market activity.