Vivo leases 31,000 sq.ft in Gurgaon
Chinese mobile handset maker Vivo has picked up two floors spread over 31,000 sq ft office space in Emaar India’s office-cum-retail complex Palm Springs Plaza in Gurgaon on lease. Vivo is setting up its corporate headquarters for India operations at this newly leased space, said two persons familiar with the development.
The deal assumes significance in the backdrop of current frosty relationship between India and China.
As part of its total space take-up, the handset maker is expected to start operations from the premises from the next few months.
“The total tenure of the deal is nine years with rental reset at every three years. Lease rentals for the deal are fixed at around Rs 95 per sq ft a month,” said one of the persons mentioned above.
Email queries to both Vivo India and Emaar India remained unanswered until the time of going to press.
The Chinese company has been aggressively pushing its marketing efforts in India through various sponsorships and tie-ups. Recently, Vivo bagged the title sponsorship of the Indian Premier League (IPL) for Rs 2,199 for five more years. In May, the mobile company also acquired the title sponsorship rights for the Pro-Kabaddi League for five years for Rs 300 crore.
Vivo, the global smartphone manufacturer, entered India in late 2014, and is currently present in more than 400 cities in 22 states across the country.
The office-cum-retail complex Palm Springs Plaza, where Vivo has picked up office space, is located on the Golf Course Road in Sector 54, Gurgaon. The 15-storey structure has 300,000 sq ft of built-up area, with 51,000 sq ft for retail activities spread over two floors, while rest are commercial offices. The complex counts organizations such as Airtel, IndusInd Bank, Bikers Café and Zizo as its occupants.
In Gurgaon, Golf Course Road and Cybercity have been attracting significant corporate interest in the backdrop of enhanced metro connectivity along the Golf Course Road and Golf Course Extension Road.
During the quarter ended June, Gurgaon recorded gross leasing volume of nearly 0.9 million sq ft, marginally up from the last quarter numbers, driven by a few mid-sized space requirements of less than 100,000 sq ft, showed a recent report by property consultant Colliers International.
Demand for office spaces here is likely to improve with several occupiers looking for new space primarily in the technology and financial sectors. About 0.5 million sq ft of new supply is likely to see completion in the second half of 2017, while by 2020 the market is likely to see addition of about 11 million sq ft. Overall, vacancy in this micro-market is set to remain high at around 30% due to continuous addition of new supply in emerging corridors, said the report.