PepsiCo Leases 91,314 Sq Ft in Kokapet at ₹58 a Foot: What the Deal Tells Us

PepsiCo India Capability Center LLP has taken 91,314 sq ft of office space at Laxmi Infobahn Tower 4 in Kokapet, Hyderabad, on a five-year lease worth close to ₹35 crore. The lease commenced on 13 March 2026.

Office leasing transactions rarely make headlines the way land auctions do, but for anyone tracking Hyderabad commercial property, they carry better information. A land price tells you what someone was willing to pay on optimism. A signed lease tells you what an occupier is willing to pay every month, for years, out of an operating budget.

The deal terms

Here is the full structure as reported:

Term	Detail
Tenant	PepsiCo India Capability Center LLP
Building	Laxmi Infobahn Tower 4, Kokapet, Hyderabad
Area	91,314 sq ft
Floors	Sixth and seventh
Rent	₹58 per sq ft per month
Monthly rent	₹52.96 lakh
Lease term	5 years
Commencement	13 March 2026
Escalation	5% annually
Security deposit	₹4.76 crore
Landlord	GAR & Son Builders LLP
Total rent over term	Approximately ₹35 crore

Where the ₹35 crore comes from

The headline figure isn’t the monthly rent multiplied by sixty. The escalation clause does most of the work.

At ₹58 per sq ft, year one costs the tenant about ₹6.36 crore. With 5% compounding annually, the rent reaches roughly ₹70.5 per sq ft by the fifth year, and the five-year total lands near ₹35 crore. Roughly ₹3.3 crore of that — close to a tenth of the contract value — comes purely from escalation.

If you own commercial property, this is the part worth internalising. The escalation clause, not the headline rate, is where a large share of the long-run return sits. Two leases at the same starting rent with different escalation terms are genuinely different assets.

The security deposit says something too

₹4.76 crore against a monthly rent of ₹52.96 lakh works out to about nine months of rent held as deposit.

That is a substantial commitment of working capital from the tenant, and it functions as meaningful downside protection for the landlord. If the tenant were to vacate early, the owner has close to a year of cover while re-letting the floors. For a landlord assessing a deal, deposit structure is a real part of the risk calculation, not an administrative footnote.

Why the tenant profile matters

This is a capability centre lease, not a sales office or a small back-office setup. Those are typically longer-horizon commitments with substantial fit-out investment behind them, which makes the occupier less likely to walk away at the first renewal.

For a property owner, tenant quality drives valuation as much as rent does. A multinational occupying full floors on a five-year term with nine months’ deposit is a different covenant from a smaller tenant on the same rent — and buyers of income-producing assets price that difference.

What this means if you are an investor

A few practical readings, keeping in mind that a single transaction is a data point rather than a market.

₹58 per sq ft per month is now a visible reference for this grade of space. If you own or are considering Grade A office space in this pocket, that is a benchmark you can point to in negotiation. It is one transaction, so treat it as a reference rather than a valuation, but transparent lease terms are hard to come by and worth noting.

The full-floor format is a signal. Taking the sixth and seventh floors as contiguous space suggests a tenant planning for scale rather than trialling a location. Buildings that can offer full floors to large occupiers command different economics from those chopped into smaller suites.

Run the yield maths on your own asset. With a known rate, a known escalation and a known deposit structure, you have enough to model what comparable space should generate. That is more useful than a broker’s asking rate.

The caveats worth holding

One lease does not establish a market rate. Rents vary by floor, view, fit-out condition, building specification and how badly the landlord wanted the tenant. We do not know what incentives — rent-free periods, fit-out contributions — sat alongside the headline rate, and those can materially change the effective rent.

The five-year term also cuts both ways. It gives the landlord visibility on income, but it also locks in escalation at 5% regardless of where the market goes. If Kokapet rents move faster than that over the period, the owner has left something on the table. If the market softens, the lease looks excellent.

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Frequently asked questions

How much office space did PepsiCo lease in Hyderabad? 91,314 sq ft at Laxmi Infobahn Tower 4 in Kokapet, across the sixth and seventh floors.

What is the rent PepsiCo is paying? ₹58 per sq ft per month, which works out to ₹52.96 lakh a month.

What is the total value of the lease? Approximately ₹35 crore over the five-year term, including the annual escalation.

When does the lease begin? It commenced on 13 March 2026 and runs for five years.

What is the escalation clause? Rent escalates 5% annually, which takes the rate to roughly ₹70.5 per sq ft by the final year.

How much is the security deposit? ₹4.76 crore — about nine months of rent.

Who is the landlord? GAR & Son Builders LLP.

Who is the tenant? PepsiCo India Capability Center LLP.

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Deal terms as reported. The year-one rent of ₹6.36 crore, the fifth-year rate of roughly ₹70.5 per sq ft, the ₹3.3 crore escalation component and the nine-month deposit equivalent are calculated from the reported figures.