IndoSpace Leases 2.72 Lakh Sq Ft Industrial Space to New Century Sofa India in Oragadam
IndoSpace, one of India’s leading developers of Grade-A industrial and logistics parks, has signed a major lease agreement with New Century Sofa India in Tamil Nadu. The lease involves 2.72 lakh square feet of industrial space at IndoSpace Industrial Park Oragadam II, located in Venbakkam village along the Oragadam–Walajabad Road in Sriperumbudur Taluk, Kancheepuram district.
This leasing transaction highlights the growing demand for Grade-A warehouse and manufacturing facilities in Oragadam, which has become one of the most important industrial hubs near Chennai. With strong road connectivity, proximity to ports, and a mature supplier ecosystem, Oragadam continues to attract manufacturing companies from India and abroad.
Details of the Lease Agreement
As per lease documents shared by CRE Matrix, the agreement has been signed for a 36-month lease period with a full 36-month lock-in. This structure provides long-term stability for both the developer and the tenant. The lease also includes a 5 percent annual rent escalation, which ensures predictable rental growth for IndoSpace while offering cost clarity to New Century Sofa India.
The total leased area is spread across three buildings within IndoSpace Industrial Park Oragadam II. Possession of the facility was handed over on 1 April 2025, allowing the tenant to begin planning operations without delay.
Building-Wise Possession and Rent Timeline
Two of the three buildings were handed over without any fit-out period. This allows the tenant to immediately install machinery and begin production activities.
The third building follows a slightly different schedule, providing additional time for interior setup before rent becomes applicable.
| Building | Lease Commencement Date | Rent Commencement Date | Fit-Out Period |
|---|---|---|---|
| Building 1 | 1 April 2025 | 1 April 2025 | No |
| Building 2 | 16 May 2025 | 1 October 2025 | Yes |
| Building 3 | 1 April 2025 | 1 April 2025 | No |
Such flexible leasing terms are increasingly common in modern industrial parks in Tamil Nadu, as they help tenants manage capital expenditure and speed up operational readiness.
Why Oragadam Is a Preferred Industrial Location
Oragadam has emerged as one of the most sought-after locations for manufacturing and logistics real estate near Chennai. The region benefits from excellent connectivity to key highways, Chennai Port, Ennore Port, and major automotive and electronics clusters.
Several global and Indian manufacturers have already established large operations in and around Oragadam. This has created a strong demand for ready-to-use industrial buildings, particularly those developed to Grade-A standards.
The presence of skilled labour, vendor networks, and reliable infrastructure makes Oragadam a strategic choice for companies looking to expand manufacturing operations in South India.
IndoSpace’s Growing Investment in Tamil Nadu
The New Century Sofa India lease comes at a time when IndoSpace is significantly expanding its presence across Tamil Nadu. The company has announced plans to invest around ₹4,500 crore in developing new industrial and logistics parks in the state.
Tamil Nadu has quickly positioned itself as a preferred destination for manufacturing investments. Companies such as Hyundai, Nissan, Foxconn, and Pegatron have announced major expansions, particularly in the automotive and electronics sectors.
IndoSpace plays an important role in supporting these industries by developing high-quality industrial spaces that meet global compliance standards.
Recent Large Leasing Deals by IndoSpace
IndoSpace has been actively signing large tenants across India in recent quarters. The company’s portfolio includes occupiers from consumer goods, retail, renewable energy, and manufacturing sectors.
Some recent notable leases include:
| Tenant | Location | Area Leased |
|---|---|---|
| Relaxo Footwears | IndoSpace Bhaproda | 2.43 lakh sq ft |
| Puma | IndoSpace Luhari IV | 2.79 lakh sq ft |
| Inox Solar | IndoSpace Bavla | 2.84 lakh sq ft |
| RenewSys | IndoSpace Khopoli II | Nearly 7 lakh sq ft |
These transactions reflect strong demand for large industrial warehouses and manufacturing units in India.
Strong Demand for Grade-A Industrial Real Estate
Market experts believe that demand for Grade-A industrial and logistics spaces in India will remain strong in the coming years. Growth in domestic consumption, expansion of organised retail, and supply chain diversification are driving leasing activity.
Sectors such as consumer products, electronics manufacturing, renewable energy, and e-commerce logistics are leading this demand. Companies prefer facilities that offer better safety standards, efficient layouts, and long-term scalability.
Commenting on IndoSpace’s growth in Tamil Nadu, Managing Director and CEO Anshuman Singh stated that the state offers stable industrial demand, reliable execution, and a diversified manufacturing base. With 15 Grade-A parks, over 650 acres of land, and more than 65 global and Indian customers already operating in Tamil Nadu, IndoSpace continues to see strong conversion of investment plans into operational facilities.
The leasing of 2.72 lakh sq ft at IndoSpace Oragadam II to New Century Sofa India reflects the continued strength of Tamil Nadu’s industrial real estate market. It also highlights the growing preference for professionally developed industrial parks that offer flexibility, scale, and long-term operational certainty.
As manufacturing activity continues to expand, locations like Oragadam and developers like IndoSpace are expected to remain at the centre of India’s industrial growth story.
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