Monday, June 9, 2025

ARM Embedded Technologies Secures Landmark Lease in Bengaluru, Bolstering India’s Semiconductor Prowess

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BENGALURU, INDIA – June 9, 2025 – ARM Embedded Technologies Pvt Ltd, the India-based subsidiary of the globally renowned UK semiconductor and software design company, ARM Holdings, has finalized a significant 15-year lease for over 400,000 square feet of prime Grade-A office space. The deal, located within the prestigious Bagmane Constellation Business Park in Bengaluru, is valued at approximately Rs 1,000 crore in total rental payments, making it one of India’s most substantial long-term commercial real estate transactions in recent memory.

This expansive lease, situated in the Taurus 4 (North Tower) block of the Bagmane-developed park, is a new commitment, not a renewal or consolidation of existing operations. This signals a robust, long-term strategic expansion for ARM in the Indian market, a pivotal hub for the global technology and semiconductor industry.

“This landmark agreement underscores the burgeoning confidence global tech leaders place in India’s innovation ecosystem,” commented a real estate market analyst. “A 15-year commitment of this magnitude, representing a staggering Rs 1,000 crore in value, clearly demonstrates ARM’s strategic vision for leveraging India’s talent pool and contributing to the nation’s growing role in advanced technology.”

The financial terms of the agreement detail a monthly rental rate of Rs 102 per square foot, translating to roughly Rs 4.17 crore each month, or Rs 50 crore annually. The lease also incorporates a structured 15% rent escalation every three years, a common feature in long-term commercial agreements of this scale. A security deposit of Rs 20.59 crore further solidifies the commitment from ARM.

The newly acquired space encompasses three basement levels, a ground floor, and 11 upper floors, providing ARM with ample room for its burgeoning research and development (R&D), engineering, and operational teams. This expansion is in line with ARM’s strategic objectives to enhance its presence in key global engineering hotspots. Peter Stephens, Director of Government Relations at ARM, was previously quoted stating the company’s intent to grow its Bengaluru operations, which already boast approximately 2,000 employees focused on architecture development, CPU and system design and verification, and software enablement.

Bengaluru’s commercial office market has been experiencing strong demand, particularly from Global Capability Centers (GCCs) and technology firms. With a projected tight supply of new Grade-A office spaces in the coming quarters, large pre-commitments like ARM’s are crucial indicators of sustained demand and a healthy market. Knight Frank’s Q1 2025 report indicated Bengaluru as India’s top office market with 4.9 million sq. ft. of gross leasing, significantly driven by GCCs.

Bagmane Constellation Business Park, located strategically in the CBD-adjacent KR Puram-Marathahalli stretch, is a highly sought-after IT SEZ. It is home to a roster of major global players, including Amazon, Boeing, Dell EMC, Google, IBM, LinkedIn, and PwC, among others, making it an ideal location for a technology leader like ARM. The park itself is known for its modern architecture, sustainable design principles, and comprehensive amenities, creating a conducive environment for innovation and collaboration.

Industry observers note that this deal is a testament to the increasing institutional investment by global technology firms in India, particularly within the critical semiconductor and embedded systems sectors. As ARM’s energy-efficient processor designs and software platforms underpin over 70% of the world’s population’s digital devices, its deepened commitment to India signifies the nation’s increasing importance in global semiconductor strategy and a broader trend of supply chain diversification and design-led innovation.

About ARM Holdings: ARM Holdings is a British semiconductor and software design company headquartered in Cambridge, England. The company designs CPU cores based on the ARM architecture and provides software development tools, systems, and platforms. Its technology is fundamental to a vast array of electronic devices worldwide, from smartphones to supercomputers.

About Bagmane Constructions Pvt Ltd: Bagmane Constructions is a prominent real estate developer in Bengaluru, known for its high-quality commercial and IT park developments that house numerous multinational corporations.

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