PayPal India renews its 2.6 lakh sq ft office lease for ten years at Futura Tech Park, Chennai. The park, managed by X Office Parks, houses major IT firms. This renewal highlights a resurgence in office leasing post-COVID, with significant activity in Xander’s 11.5 million sq ft portfolio across India.
For ten years, PayPal India has renewed its 2.6 lakh sq ft office lease at Futura Tech Park in Chennai’s OMR Sholinganallur. This significant transaction highlights the ongoing demand for premium office spaces in India’s technology hubs.
Futura Tech Park, part of X Office Parks’ portfolio owned by Singapore-based Xander Investment Management, is in Chennai’s bustling technology corridor of OMR Sholinganallur. This area is home to major IT companies like TCS, Infosys, and Wipro. “The lease rental is in the range of ₹60 to 65 per sq ft,” revealed a source familiar with the deal.
PayPal has maintained its presence at Futura Tech Park since 2013, where it houses its senior leadership and over 2,500 employees. The campus also hosts other multinational tenants such as Standard Chartered and Philips. Besides Chennai, PayPal operates offices in Bengaluru and Hyderabad and a sales office in Mumbai.
X Office Parks, sponsored by Xander Investment Management, manages a substantial office portfolio across India. Founded in 2005, Xander has invested over $5 billion in the country. After the COVID-19 pandemic struck, the commercial office sector is witnessing a resurgence in leasing activities, particularly for institutionally owned office assets.
Since mid-2021, X Office Parks has experienced significant leasing activity across its 11.5 million sq ft portfolio. Recent lease renewals with JP Morgan in Pune’s Weikfield Corporate Park and Microsoft and Aristocrat Technologies in Noida’s Express Corporate Park highlight this trend. Additionally, Hive, Xander’s flexible workspace offering, has seen a 25% increase in occupancy over the past year.
“With the ebbing of COVID-19 followed by the relaxation of restrictions, the Indian real estate sector is recovering faster than expected. With occupiers returning to the office, gross office absorption during the first quarter of 2022 rose to 13 million sq ft, a three-fold increase year-on-year,” stated Ramesh Nair, CEO of India and Managing Director Market Development, Asia at Colliers. He added, “The demand for office and industrial space will remain strong throughout the year. Investment confidence remains intact as investors bet on traditional assets as the economy recovers.”
In conclusion, PayPal’s renewal of its lease at Futura Tech Park underscores the enduring appeal of Chennai’s technology corridor for global enterprises. As the commercial real estate sector continues its robust recovery, institutions like X Office Parks are well-positioned to capitalise on the sustained demand for premium office spaces.
