Gigaplex Estate Pvt. Ltd, one of the Special Purpose Vehicles (SPV) of Mindspace REIT, has entered into a sublease agreement with a leading data centre operator.
Gigaplex will sub-lease approximately 0.63 million sq. ft. at Mindspace, Airoli West in Mumbai, the company said in a filing to the stock exchanges.
In December 2019, the Board had amended in a memorandum of understanding with K Raheja Corp Pvt. Ltd. (KRCPL), for proposed transfer of leasehold land admeasuring approximately 16.4 acres to KRCPL at Mindspace Airoli West, Mumbai.
Consequent to the amendment, the area proposed to be transferred to KRCPL under the MoU stands reduced to 5.7acres. Gigaplex has proposed to utilise 7.4 acres of the retained land for the purpose of development of the data center as per the Agreement. The balance land (excluding amenity space), contiguous to the existing development, shall be used for future office development, the filing said.
With increased internet usage, growing demand for data storage and anticipated data localisation norms Mumbai stands to benefit due to its geographical and infrastructural advantage. Government’s focus on “Digital India” and the ongoing Covid-19 pandemic have further catalysed the process of digitisation.