Vikram Solar Ltd has leased 5.73 lakh sq ft of industrial space at Indospace Park Vallam II in Chennai for five years, with a total net rental commitment of approximately ₹93 crore. The transaction reflects the growing demand for large-format industrial facilities in Chennai, supported by the expansion of India’s solar manufacturing sector.
According to property registration documents accessed by Propstack, the lease agreement was signed between Vikram Solar Ltd and Indospace Vallam II Pvt Ltd. The leased property has a chargeable area of 573,314 sq ft and a carpet area of 504,606 sq ft. The agreement provides for a lease tenure of 60 months, which commenced on June 12, 2025.
Under the agreement, Vikram Solar will pay a monthly rent of ₹1.53 crore, calculated at ₹26.75 per sq ft per month. The company has also paid a security deposit of ₹9.20 crore. The lease includes a three-month rent-free period, reducing the overall rental commitment over the five-year tenure to approximately ₹93 crore.
The rental structure includes a 15% escalation at the end of the third year, followed by an annual increase of 5% thereafter. As per the agreed terms, the company will pay rent for nine months in the first year, followed by rental payments for the remaining four years. The escalation clauses will increase the rental outgo during the final two years of the agreement.
Chennai Attracts Clean Energy Manufacturing Investments
The transaction comes amid increasing industrial real estate activity in Chennai, particularly in facilities catering to manufacturing, logistics and allied industries. The expansion of India’s renewable energy manufacturing capacity has created additional demand for industrial properties that can accommodate large-scale production operations.
Commenting on the transaction, Raja Seetharaman, co-founder of Propstack, said that Vikram Solar’s lease at Indospace Park Vallam II reflects the relationship between India’s clean energy expansion and industrial real estate demand.
He noted that solar manufacturing requires specialised infrastructure, including adequate power capacity and facilities that meet environmental, social and governance (ESG) requirements. Institutional industrial park developers are increasingly providing facilities that help manufacturers establish or expand their operations within shorter timelines.
According to Seetharaman, such transactions also strengthen Chennai’s position as a manufacturing destination for green technology and clean energy companies.
Industrial Real Estate Demand in Chennai
Chennai has emerged as an important industrial and logistics market, supported by its manufacturing base, connectivity and established industrial corridors. The availability of organised industrial parks has attracted companies looking for large facilities with supporting infrastructure for production and distribution activities.
Indospace Park Vallam II is an industrial and logistics development in Chennai. The latest lease adds to the city’s industrial property transactions, where demand is supported by manufacturing expansion and the growing requirements of businesses across different sectors.
Vikram Solar is an established Indian manufacturer of solar photovoltaic (PV) modules. Its requirement for a large industrial facility comes amid the country’s efforts to strengthen domestic solar manufacturing and expand renewable energy capacity.
The transaction also highlights the role of institutional industrial developers in meeting the space requirements of manufacturing companies. As businesses expand production capacities, organised industrial parks offering large floor areas and supporting infrastructure are likely to remain an important part of India’s industrial real estate market.
