Netflix invested Rs. 284 crore and extended its Mumbai office lease to take its content creation to the next level.
Netflix, the popular streaming service, has decided to continue renting office space in Mumbai’s business district, Bandra-Kurla Complex (BKC). It has renewed the lease for its headquarters, which covers a large area of 137,000 square feet in the Godrej BKC commercial tower.
In this new agreement, Netflix will pay around Rs. 4.30 crore each month for two separate leases managed by Netflix Entertainment Services India LLP. The office space is split between the 11th and 12th floors of the building.
The deal is set for five years, and a clause raises the rent by 5% every year. This means Netflix will pay more than Rs. 284 crore during the entire lease.
Netflix initially rented this office space from D’Decor Properties LLP in January 2019. Now, they’ve decided to extend the lease, and all the necessary paperwork was completed on 3 November.
The starting monthly rent for both spaces is Rs. 313 per square foot. Netflix will also have access to 114 parking spaces in the building.
This new lease started on October 18 and has a lock-in period of three years for Netflix India and five years for D’Decor Properties LLP. To secure this extension, Netflix paid a deposit of over Rs. 34.30 crore.
In a separate deal, Netflix also extended its contract for flexible office space, with more than 320 seats and a total area of 8,860 square feet at WeWork’s Nesco coworking centre in the Goregaon suburb of Mumbai. Anibrain will use this space for visual effects work, which is in high demand for Netflix’s Indian content.
Netflix is heavily investing in content created in India, with many original series and films produced. They are taking Indian cinema to a global audience.
In 2022, Netflix saw a significant increase in subscribers in India thanks to attractive pricing and a wide selection of Indian original content and licensed movies. This has led to higher viewership and revenue growth for the streaming service.
India’s commercial real estate sector is doing well thanks to its skilled workforce and cost advantages. The office space leasing market in the top seven cities has shown substantial growth in recent months, with a 30% increase in the third quarter compared to the previous one.