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L&T and Amazon Data Services sign a 21.5-year lease for 5.5 acre
Amazon Data Services India has signed a 21.5-year long-term lease with engineering and construction giant Larsen & Toubro to acquire a 5.5-acre block of property in Mumbai's Powai neighbourhood.
On this piece of property, the Amazon subsidiary intends to build a data centre for which it will be required to pay rent of more than Rs 9.21 billion for the course of the lease, excluding rate increases. The contract stipulates that the lease rental will increase by 3 per cent annually.
A security deposit of Rs 990 million has already been made to Larsen & Toubro by Amazon Data Services India. According to the leasing agreement, Amazon will receive 24 months of rent-free time spaced out throughout the length of the entire contract, including the first six months from the start date. The lock-in period, which lasts 180 months or 15 years, is also included in the lease term.
For the lease agreement's registration, Amazon Data Services India has paid stamp duty in the amount of Rs 56.4 million.
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