Vikram Solar Leases 5.7 Lakh Sq Ft Industrial Space

Vikram Solar Limited has leased 5.73 lakh sq ft of industrial space at Indospace Park Vallam II in Chennai for a five-year period, with a total net rental commitment of approximately Rs 93 crore.

The lease covers a chargeable area of 573,314 sq ft and a carpet area of 504,606 sq ft, according to property registration documents accessed by Propstack.

Vikram Solar Signs Five-Year Industrial Lease in Chennai

The lease agreement was signed with Indospace Vallam II Pvt Ltd and commenced on June 12, 2025. Vikram Solar has agreed to pay a monthly rent of Rs 1.53 crore, calculated at Rs 26.75 per sq ft per month.

The agreement has a tenure of 60 months and includes a security deposit of Rs 9.20 crore.

The company will also receive a three-month rent-free period under the agreed terms.

After accounting for this rent-free concession, the total net rent payable over the five-year lease period works out to approximately Rs 93 crore.

The company will pay rent for nine months during the first year, followed by payments for the remaining four years.

Lease Includes Rent Escalation Provisions

The agreement includes a structured rental escalation clause. Rent will increase by 15% at the end of the third year, followed by an annual escalation of 5% thereafter.

This arrangement means the rental commitment will increase during the final two years of the lease.

The agreed escalation structure forms part of the commercial terms documented in the transaction.

The combination of the five-year tenure, rent-free concession, security deposit and escalation provisions outlines the financial structure of the industrial property lease.

Indospace Park Vallam II Adds to Chennai's Industrial Property Activity

Indospace Park Vallam II is an industrial and logistics park located in Chennai. Vikram Solar's lease adds a large-format manufacturing requirement to the property's occupancy and leasing activity.

The transaction also highlights the role of institutional industrial parks in accommodating companies that require substantial manufacturing space.

The leased area includes more than 5 lakh sq ft of carpet area, making it a sizeable industrial property commitment.

According to Raja Seetharaman, co-founder of Propstack, the transaction illustrates how clean-energy manufacturing activity is contributing to industrial real estate absorption.

He also highlighted the importance of specialised power requirements and ESG compliance for high-specification manufacturing facilities.

Also Read: Accenture Leases 5.84 Lakh Sq Ft Across Mindspace Airoli

Solar Manufacturing and Industrial Real Estate Demand

Vikram Solar is an Indian manufacturer of solar photovoltaic (PV) modules.

Its industrial space requirement comes amid the expansion of India's solar manufacturing ecosystem and the broader push to increase domestic renewable energy capacity and manufacturing capabilities.

The transaction reflects the connection between manufacturing activity and demand for large industrial facilities.

Businesses operating in sectors such as solar module production require suitable premises to support their operations.

Chennai's industrial property market also serves manufacturing, logistics and allied businesses. The lease adds to activity in this segment, where large-format facilities are an important part of the property market.

Also Read: Versigent Leases 2.91 Lakh Sq Ft in Chennai for 10 Years

Key Takeaways

• Vikram Solar leased 5.73 lakh sq ft at Indospace Park Vallam II in Chennai.
• The five-year lease carries a total net rent of approximately Rs 93 crore.
• The monthly rent is Rs 1.53 crore, at Rs 26.75 per sq ft.
• The agreement includes a Rs 9.20 crore security deposit and a three-month rent-free period.
• Rent escalation is set at 15% after the third year and 5% annually thereafter.
• The leased property has a chargeable area of 573,314 sq ft and a carpet area of 504,606 sq ft.

The transaction highlights the scale of industrial space requirements associated with solar manufacturing and the role of institutional industrial parks in meeting them.

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