IndoSpace, a leading investor, developer, and operator of Grade-A industrial and logistics real estate in India, has signed a major lease with New Century Sofa India. The deal covers 2.72 lakh sq ft at IndoSpace Industrial Park, Oragadam II. The facility is located in Block B, Venbakkam, along the Oragadam–Walajabad Road in Sriperumbudur Taluk, Kancheepuram District.
According to lease documents shared by CRE Matrix, the agreement has a 36-month tenure with a full 36-month lock-in. This structure ensures long-term stability for both parties. The lease also includes a 5% annual rent escalation, offering predictable annuity income for IndoSpace and operational certainty for the tenant.
Phased Possession Enables Faster Operational Readiness
Notably, the lease covers three buildings within the industrial park. This structure allows New Century Sofa India to plan its operations efficiently. IndoSpace handed over possession on 1 April 2025, enabling early operational preparation. Buildings 1 and 3 had no fit-out period. As a result, the tenant could install machinery and begin operations immediately after handover.
Meanwhile, Building 2 follows a staggered timeline. The Lease Commencement Date is 16 May 2025. The Rent Commencement Date begins on 1 October 2025. Consequently, this phased approach offers flexibility. It also aligns rental obligations with operational readiness.
Part of IndoSpace’s Larger Industrial Expansion Strategy
Importantly, this transaction aligns with IndoSpace’s aggressive expansion in Tamil Nadu. The developer has increased its planned capital deployment to ₹4,500 crore for new logistics and warehouse developments. This surge reflects the state’s rapid emergence as a preferred destination for large-scale manufacturing. Strong infrastructure and supportive policies continue to drive this growth.
Global and domestic OEMs such as Hyundai, Nissan, Foxconn, and Pegatron have already announced major expansions in the region. Meanwhile, IndoSpace plays a critical role in supporting these supply chains. It does so by delivering scalable, Grade-A industrial facilities.
Furthermore, the Oragadam deal adds to IndoSpace’s recent leasing momentum. In recent quarters, the company signed large occupiers across multiple locations. These include Relaxo Footwears at Bhaproda (243,549 sq ft), Puma at Luhari IV (around 279,000 sq ft), Inox Solar at Bavla (284,180 sq ft), and a nearly 700,000 sq ft expansion by RenewSys at Khopoli II.
Consequently, industry experts see this sustained leasing activity as a sign of strong demand. Key sectors include consumer goods, retail, electronics, and renewable energy. This demand is driven by India’s expanding consumption base and continued supply chain diversification.
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