New Launch - India Real Estate Report 2026.
Eicher Motors Limited, the maker of Royal Enfield motorcycles, has leased 3.92 lakh sq ft of industrial space at Casagrand Industrial Park in Sriperumbudur, near Chennai, for seven years at a monthly rent of nearly Rs 82.45 lakh, according to documents accessed by Propstack.
The property is owned by Casagrand Blue Horizon Private Limited.
Lease terms and Casagrand-Blackstone backstory
The lease is expected to commence on August 31, while rent payments will begin from May 2027. The per sq ft rent works out to Rs 21.06 per sq ft per month, and the tenant has paid a security deposit of Rs 5.24 crore.
Rent and maintenance fees are subject to an annual escalation of 3.5 per cent every year after completion of two years, and the lease deed was registered on July 31, 2026.
The deal traces back to 2025, when Casagrand's warehousing and industrial parks division announced a strategic co-development deal with Blackstone for two industrial and logistics parks at Sriperumbudur, spanning 4.2 million sq ft on a 154-acre land parcel, with Blackstone investing around Rs 700 crore towards the facilities, expected to be ready in about 30 months.
At the time, the company said part of the facilities had already received pre-leasing commitments, with Eicher Motors slated to use around 400,000 sq ft as an auto spare parts consolidation facility for Royal Enfield.
Casagrand Industrial & Warehousing has already delivered 6 million sq ft and is executing a 15 million sq ft pipeline.
Raja Seetharaman, co-founder of Propstack, said Eicher Motors' commitment to a long-term seven-year lease underscores robust demand for Grade-A industrial assets driven by India's automotive and manufacturing expansion, with hubs like Sriperumbudur commanding high tenant retention.
Queries emailed to Eicher Motors had not received a response at the time of reporting.
Also Read: IKEA Plans 30 India Stores by 2030 with Transit Focus
Chennai's industrial leasing hits record high in H1 2026
According to the Cushman & Wakefield MarketBeat report, Chennai's warehousing market saw 2.3 million sq ft of leasing in H1 2026, a 10 per cent year-on-year increase and 1 per cent growth over H2 2025.
Industrial leasing surged to a record 3.8 million sq ft, the highest ever recorded for any half-year, accounting for nearly 63 per cent of overall leasing activity. Industrial leasing volume grew 79 per cent compared to H2 2025 and 64 per cent year-on-year.
Other major industrial leases in Chennai
Several other large industrial leases have been recorded in Chennai recently:
- Zomato Hyperpure recently leased over 3.5 lakh sq ft of warehousing space at Hiranandani Industrial Park, Redhills, for more than nine years at Rs 87.46 lakh monthly rent
- DHL Supply Chain India leased approximately 4.28 lakh sq ft at Indospace Industrial & Logistic Park, Vishnuvakkam, for a monthly rent of Rs 96.64 lakh last year
Tamil Nadu's industrial growth, driven primarily by electronics, automotive and export-oriented manufacturing, has accelerated the need for high-specification logistics and industrial infrastructure, Casagrand had said.
Enjoyed this update? Visit PropTech Pulse for more real estate news, investment insights and property market trends.
