Eicher Motors Limited, the manufacturer of Royal Enfield motorcycles, has leased nearly 3.92 lakh sq. ft. of Grade A industrial space at Casagrand Industrial Park in Sriperumbudur, Tamil Nadu, reinforcing the region’s position as one of India’s leading automotive and manufacturing hubs.
According to property documents accessed by Propstack, the industrial facility has been leased from Casagrand Blue Horizon Private Limited for a period of seven years. The lease is scheduled to commence on August 31, 2026, while rental payments will begin from May 2027.
The monthly rental for the property has been fixed at approximately ₹82.45 lakh, translating to ₹21.06 per sq. ft. per month. Eicher Motors has also deposited ₹5.24 crore as a security deposit. As per the lease agreement, both rent and maintenance charges will increase by 3.5% annually after the completion of the first two years. The lease deed was officially registered on July 31, 2026.
Industry experts view the transaction as another indicator of sustained demand for high-quality industrial and logistics infrastructure. Raja Seetharaman, Co-founder of Propstack, said the long-term lease reflects continued confidence in Grade A industrial assets, supported by the expansion of India’s automotive and manufacturing sectors. He noted that established industrial locations such as Sriperumbudur continue to attract strong occupier interest because of their manufacturing ecosystem and logistics connectivity.
The transaction also aligns with a larger industrial park development announced in 2025, when Casagrand’s warehousing and industrial parks division entered a strategic co-development partnership with Blackstone to develop 4.2 million sq. ft. of industrial and logistics space across 154 acres in Sriperumbudur. Blackstone had committed an investment of around ₹700 crore for the project, with Eicher Motors identified as one of the anchor occupants for an auto spare parts consolidation facility supporting its Royal Enfield operations.
Demand for industrial and warehousing space in Chennai has remained strong. According to the Cushman & Wakefield MarketBeat H1 2026 report, Chennai recorded 2.3 million sq. ft. of warehousing leasing during the first half of 2026, representing a 10% year-on-year increase. Industrial leasing reached a record 3.8 million sq. ft., accounting for nearly 63% of total leasing activity, driven by manufacturing, automotive, electronics, and export-oriented industries.
With continued investments in industrial infrastructure and increasing occupier demand, Sriperumbudur is expected to remain one of South India’s preferred destinations for manufacturing, logistics, and supply chain operations.
