Air India has finalized a lease agreement for 6.2 lakh sq ft in Gurgaon's E-Innovation Centre, Sector 75, at an annual rent exceeding Rs 60 crore. It has leased blocks B, C, and E for 21 years. The leases, featuring a 4% annual rent escalation, were registered on October 18, 2023. The property comes with 450 car parking spots. The developer will construct the facility, catering to Air India's pilot training needs. In the past few months, Air India leased 1,80,750 sq ft of office space in Vatika One on One in Gurugram and also has sold its Air India building at Nariman Point to the Maharashtra State Government.
Air India has signed a lease agreement to take up commercial space spread across an area of 6.2 lakh sq ft in E-Innovation Centre in Gurgaon, Sector 75. As per documents accessed by CRE Matrix, a real estate data analytics firm, the annual rent is over Rs 60 crore.
Air India has taken up blocks in E-Novation Centre, Sector 75, Gurugram from the landlord, Innovative Techno Park Pvt Ltd. The airline has leased the property for a period of 21 years.
Four blocks have already been built on the land, which is around 10 acres, and some of it has also been leased. The airline has taken up blocks B, C and E spread across an area of 3.61 lakh sq ft, at an average rent of Rs 2.40 crore per month at E-Novation Centre. The security deposit paid is Rs 14.40 crore and a stamp duty of Rs 3.89 crore was paid for the deal.
The airline has also taken an area of 2.66 lakh at a monthly rent of Rs 2.85 crore per month. It has paid a security deposit of Rs 17.10 crore for this deal and a stamp duty of Rs 4.32 crore. The property comes with 450 car parking spots.
The developer will construct the building as per the specifications laid out by the airline. Since the training centre will come up with a simulator for pilots, the building will have to be constructed keeping that in mind.
Both the leases were registered on October 18, 2023. According to the documents, there is a 4% rent escalation section in the agreement at the end of each year.
After the Tata’s acquired Air India, the airline has been optimising its assets on multiple fronts. Last month, Air India leased 1,80,750 sq ft of office space from ground floor to sixth floor in Block 5 of Vatika One on One for a monthly rent of Rs 1.89 crore. Vatika One on One office complex is located on National Highway 48 on a 12-acre campus in Gurugram’s Sector 16. It comprises six independent towers and offers a signal free connectivity from the Indira Gandhi International airport, which is just six kms away. It has access to 180 car parking space and 18 additional parking spaces in Block 5.
Recently, Swedish telecom gear maker Ericsson also signed an agreement to lease about 500,000 sq ft with managed workspace provider Skootr at the Vatika One-on-One building. Ericsson has leased about 325,000 square feet for immediate occupancy and has kept the right to refuse another 200,000 sq ft.
Parallel to this, in a major announcement last month, the iconic 23-storey Air India building at Nariman Point in Mumbai is all set to be acquired by Maharashtra government at a cost of Rs 1,601 crore. Constructed in 1974 on the state government’s land, the Air India building will now be used by the government for its office space.
Last month, Air India said that it expects to add more than 30 new aircrafts to its fleet, including six A350s, four B777s and 20 A320 neos. It also aims to add over 400 weekly services and operate to four new international destinations in North America, Europe, and Southeast Asia in the next six months. Earlier this year, Air India placed orders for 470 aircraft with Airbus and Boeing.
There has been a slew of measures undertaken as part of Air India’s growth strategy since being privatised, with multiple changes in its asset base. The present leasing of space for training centre is part of this strategy and is well-suited for its ambitious growth.
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