Eicher Motors leases nearly 4 lakh sq ft of industrial space in Tamil Nadu’s Sriperumbudur
Eicher Motors Leases Nearly 4 Lakh Sq Ft in Sriperumbudur
Bharatmorningnews.com – Documents obtained by Propstack reveal that Eicher Motors leases nearly 4 lakh square feet of industrial space in Sriperumbudur, Tamil Nadu. The company has entered into a seven-year lease agreement for 3.92 lakh square feet within a building, committing to monthly rental payments of approximately ₹82.45 lakh.
The facility, known as Casagrand Industrial Park, is owned by Casagrand Blue Horizon Private Limited. According to the lease deed, the arrangement officially begins on August 31. At a rate of Rs. 21.06 per square foot monthly, the tenant has also transferred a security deposit amounting to Rs. 5.24 crore. The rental period is scheduled to commence in April 2027, as outlined in the documentation.
Financial terms include an annual escalation clause of 3.5% on both rent and maintenance charges, applicable following the completion of two years. This long-term commitment highlights the growing appetite for premium industrial real estate in the region.
Strategic Expansion in Tamil Nadu
Raja Seetharaman, co-founder of Propstack, emphasized the significance of this development. He noted that Eicher Motors’ decision to lock in a seven-year lease at Casagrand Industrial Park reflects strong demand for Grade-A industrial properties. This trend is fueled by India’s expanding automotive and manufacturing sectors. Locations such as Sriperumbudur, recognized as key logistics and industrial centers, continue to demonstrate high tenant retention rates alongside steady capital investment.
This lease follows a broader strategic partnership announced in 2025. Real estate developer Casagrand’s warehousing and industrial parks division partnered with private equity firm Blackstone for a co-development project. The collaboration involves two industrial and logistics parks situated in Sriperumbudur, near Chennai. Covering a 154-acre parcel, the project encompasses 4.2 million square feet. Blackstone committed roughly ₹700 crore toward construction, with operations anticipated to begin within 30 months.
At the time of the announcement, Casagrand indicated that pre-leasing commitments had already been secured for portions of the upcoming facilities. Eicher Motors was identified as a key tenant, planning to utilize approximately 400,000 square feet as a consolidation center for auto spare parts supporting its Royal Enfield premium motorcycle lineup. The developer also projected that the space would draw a diverse mix of international and local businesses.
Regional Market Growth
Casagrand Industrial & Warehousing has reported delivering 6 million square feet of space while actively managing a pipeline of 15 million square feet. The company attributes accelerated demand to the state’s industrial expansion, particularly in electronics, automotive manufacturing, and export-oriented sectors requiring high-specification logistics infrastructure.
Market data supports this upward trajectory. A Cushman & Wakefield MarketBeat report highlighted that Chennai’s warehousing sector absorbed 2.3 million square feet during the first half of 2026. This represents a 10% year-over-year increase and a 1% rise compared to the second half of 2025. Industrial leasing reached an unprecedented 3.8 million square feet, marking the highest half-year volume on record and comprising nearly 63% of total leasing activity.
Other major players are also strengthening their South Indian presence. Eternal, the parent company of Zomato, has leased over 3.5 lakh square feet of warehousing space in Chennai through its B2B grocery supply division, Hyperpure. The nine-year-plus lease carries a monthly rent of ₹87.46 lakh. Located at the Hiranandani Industrial Park in Redhills along Periyapalayam High Road, the property was secured from Jurojin Developers Private Limited. The lease began on March 30, 2026, with rentals calculated at ₹25 per square foot monthly. A security deposit of ₹3.5 crore was paid, and the agreement stipulates a 5% annual rent increase throughout the tenure.
Similarly, DHL Supply Chain India Pvt Ltd recently secured approximately 4.28 lakh square feet of warehouse space in Chennai. The company rents the facility at the Indospace Industrial & Logistic Park in Vishnuvakkam for ₹96.64 lakh monthly, according to registration documents reviewed by Propstack.
“Eicher Motors’ commitment to a long-term 7-year lease at Casagrand Industrial Park underscores robust demand for Grade-A industrial assets, driven by India’s automotive and manufacturing expansion. Prime logistics and industrial hubs like Sriperumbudur continue to command high tenant retention and consistent capital allocation.”
Frequently Asked Questions
What is the total area leased by Eicher Motors in Sriperumbudur? Eicher Motors leases nearly 4 lakh square feet (specifically 3.92 lakh sq ft) of industrial space in Sriperumbudur, Tamil Nadu.
How long is the lease agreement? The lease agreement is for a period of seven years, with the rental period scheduled to commence in April 2027.
What is the monthly rental amount? Eicher Motors has committed to monthly rental payments of approximately ₹82.45 lakh at a rate of Rs. 21.06 per square foot.
What is the purpose of this facility? The space will serve as a consolidation center for auto spare parts supporting Eicher Motors’ Royal Enfield premium motorcycle lineup.
Where is Casagrand Industrial Park located? Casagrand Industrial Park is located in Sriperumbudur, near Chennai, Tamil Nadu, a key logistics and industrial center in South India.