Viacom18 Media, a division of Reliance Industries, secures a significant five-year lease for 4.1 lakh square feet of prime office space in Mumbai, with an initial monthly rent of Rs 7 crore. The company will occupy nine floors in Prabhadevi's 'One International Centre.' A noteworthy detail is a 12-month rent-free period. The monthly rent increases by 4.5% annually from the second year, reaching nearly Rs 8 crore in the final year. The lease's terms bind both landlord and tenant. A security deposit of Rs 41.8 crore further solidifies this strategic alliance.
Viacom18 Media, the digital media and entertainment arm of Reliance Industries, has made a notable foray by securing a lease for a substantial 4.1 lakh square feet of premium office space in Mumbai. This strategic endeavour, encompassing a lease duration of five years, commences with a monthly rental commitment of approximately Rs 7 crore, as unveiled in official registration documents. The media conglomerate has elected to establish its presence across nine floors within the illustrious 'One International Centre' situated in Prabhadevi. This property forms part of the esteemed portfolio of office assets managed by the prominent U.S.-based investment heavyweight, Blackstone, and is encompassed within the purview of Nucleus Office Parks.
Notably, Viacom18 Media successfully negotiated an exceptional advantage, as disclosed documents substantiate a 12-month rent-free period for the secured space. The lease agreement delineates an initial effective monthly rent set at Rs 170 per square foot, coupled with an annual increment of 4.5% scheduled to be enforced from the commencement of the second year. In the ultimate year of the lease term, the monthly rent escalates to a formidable Rs 8 crore, ultimately translating into a cumulative pay out in excess of Rs 357 crore over the course of the complete lease term. Viacom18 Media has furnished a substantial security deposit, amounting to approximately Rs 41.8 crore.
The scope of the lease encompasses not only the office space but also extends to provide Viacom18 Media with exclusive access to a total of 380 car parking spaces, along with 25 dedicated two-wheeler parking slots. Moreover, the lease package incorporates the privilege of utilizing five designated passenger elevators within the building and an allocated area within the building's food court, offering seating for up to 180 individuals.
Viacom18 Media is a multifaceted entity, boasting a diverse array of segments that encompass television broadcasting, JioCinema, Viacom18 Studios, and a robust licensing and merchandising division operating under the banner of Viacom18 Consumer Products. The company owns and operates several well-known television channels, including Colors, CNBC TV 18, MTV, Nickelodeon, and others. The newly acquired office space is poised to become the central hub and corporate headquarters, with occupancy extending across a total of eight floors within the building complex. Of paramount significance, Viacom18 Media has secured exclusive TV and digital media rights for the prestigious BCCI for the forthcoming five years, underscoring the company's prominence within the dynamic media landscape.
Additionally, Viacom18 Studios is poised for expansion, with strategic initiatives geared towards increasing film production and targeting a revenue goal of ?1,000 crore, drawn from an array of diverse projects. The licensing period for this prestigious office space is set to take effect on December 25, 2023, with rental obligations slated to commence a year later, on December 25, 2024. The 'One International Centre,' characterized by its three distinctive towers, boasts a cumulative leasable expanse of 1.67 million square feet.
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