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Apple has secured a deal to lease more than three floors of a new building in Minsk Square, located in Bengaluru’s bustling business district. The lease, which is set to begin on July 1, 2023, will cost the tech giant $300,000 per month, with a 15% increase every three years.
According to The Hindu Businessline, a key stipulation of Apple’s lease is that no competitors are allowed to rent space in the building. The specified competitors include tech giants Alphabet, Microsoft, Samsung, Xiaomi, Amazon, Huawei, Netflix, Facebook, Spotify, Baidu, and Tencent.
Apple has been a major player in Bengaluru’s tech scene since leasing over 40,000 square feet of office space in the city for its Design and Development Accelerator program. The Minsk Square space adds an impressive 1,16,888 square feet across three full floors and portions of two more. It is not yet clear if the new lease is in addition to the existing space, but the total amount of office space leased by Apple in Bengaluru is undoubtedly substantial.
While the lease is set for a decade, the contract binds Apple and the building owner, Prestige Estates Projects, for only five years. Apple does have the option to renew the lease for three additional terms of five years each.
Apple’s latest lease is part of a larger push to move more production to India and away from China. The company’s suppliers, including Foxconn, are also following suit with plans to build a $700 million iPhone-focused plant in Bengaluru.
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Apple’s decision to lock out specific competitors from renting space in the Minsk Square building speaks to the company’s fierce competition in the tech industry. With competitors such as Alphabet, Microsoft, and Amazon hot on Apple’s heels, the company is determined to stay ahead of the curve.