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Citigroup Leases 7.7-lakh-sq-ft Office in Pune’s Kharadi

Citigroup Leases 7.7-lakh-sq-ft Office in Pune’s Kharadi

Citigroup Inc. has finalized one of the largest commercial office space transactions of the year. The financial services giant has secured over 7.7 lakh sq ft of office space through a long-term lease in Pune’s Kharadi locality. According to records obtained by CRE Matrix, the company has leased 10 floors at Panchshil Business Hub for an estimated Rs 1,100 crore. 

The lease, which starts on April 1, covers the commercial tower’s 7th through 16th floors. Depending on the level, the starting monthly rentals range from Rs 2.02 crore to Rs 2.71 crore. The contract specifies a lock-in duration of 4-5 years for various floors. It also mentions a 15% rental escalation clause every 36 months.

The leased space has been secured through Citigroup’s subsidiary, Citicorp Services India. They primarily provide back-office, technology, and operational support services for the global operations of Citigroup. 

Of the total space, 3.07 lakh sq ft is located on the 13th to 16th floors, and 2.34 lakh sq ft is spread across the 10th to 12th floors. The remaining 2.29 lakh sq ft is on the 7th to 9th floors. The total deal value includes rental payments along with common area maintenance (CAM) charges. The charges are subject to an annual escalation of 5% and will amount to nearly Rs 197 crore over the lease term.  

As part of the agreement, Citigroup will also receive exclusive access to 770 car parking slots and 1,185 two-wheeler parking spaces. In addition to these designated parking spots, the company has the option to secure additional parking at rates of Rs 6,000 per car and Rs 2,600 per two-wheeler. Citigroup has paid a security deposit of Rs 20.36 crore.  The registration of the deal took place on March 12.  

Citicorp Services India, while distinct from Citibank India, plays a crucial role in Citigroup’s operations. They handle key functions such as risk management, compliance, information technology services, analytics, and financial operations. The company’s decision to secure such a vast office space highlights its commitment to expanding its presence in India. This move further reinforces Pune’s position as a hub for global capability centers (GCCs).  

Recent Transactions

The transaction highlights the resilience of India’s commercial real estate market. Leasing activity has reached record levels for the third consecutive year, driven by strong demand from global corporations. Despite economic uncertainties, multinational corporations continue to drive demand for office spaces, particularly for setting up GCCs. The Indian government has also been instrumental in fostering this growth by introducing incentives for such centers. This has further solidified the country’s appeal as a preferred destination for global businesses. 

In a recent transaction, co-working giant Awfis Space Solutions leased 1.97 Lakh Sq Ft of office space in Pune’s Kharadi. In another transaction, US-based CA Technologies Private Limited renewed its lease for a 1.08 lakh sq ft commercial space in the same area. 

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Puravankara Chairman Acquires Office space in Andheri, Mumbai, for Rs 242 Crore

puravankara chairman acquires office space

Mumbai’s commercial real estate market has witnessed a significant transaction, with Ravi Puravankara, founder and chairman of Puravankara Ltd, acquiring over 104,000 sq ft of office space in Andheri for Rs 242.1 crore. According to documents obtained through CRE Matrix, the purchase was made from Rockfort Estate Developers, an HLV Group promoter company. With the acquisition, Puravankara now has exclusive use of over 135 parking spaces in the business complex.

The agreement, which was finalized on Wednesday, includes twelve commercial apartments located on the 7th, 8th, and 9th floors of Business Park 2, a prestigious business complex in Marol, Andheri. The stamp duty of about Rs 14.5 crore, paid to complete the registration, demonstrates the size of this investment.

Puravankara, who previously focused on South Indian real estate markets like Bengaluru and Chennai, is making a calculated move with this acquisition. Nonetheless, the business has been aggressively growing its footprint in Mumbai’s real estate market in recent years by making well-thought-out investments in residential and commercial real estate.

Though the exact purpose of the recently gained space is yet unknown, there are several conjectures regarding its possible usage. Given that the agreement was concluded in Ravi Puravankara’s personal capacity, it is unclear if the space will be leased to high-end tenants, converted into a larger corporate office, or utilized to launch a new company segment.

The deal highlights the increasing trust that investors have in Mumbai’s commercial real estate market. High-net-worth individuals seeking to diversify their investment portfolios continue to be drawn to the city due to its steady rental yields and optimistic economic outlook.

Bollywood stars and sports figures, as well as developers and industrialists, have been actively purchasing commercial buildings in Mumbai, utilizing them as profitable investment opportunities. The trend reflects the general belief that real estate is still one of the safest and most lucrative asset classes for preserving and increasing wealth.

Ravi Puravankara’s most recent acquisition further strengthens Mumbai’s need for upscale office space. Industry insiders predict additional high-value deals in the upcoming months as the city’s commercial real estate sector continues to flourish, solidifying Mumbai’s position as one of India’s most vibrant real estate marketplaces.

Recent Transactions

A rise in high-value office space transactions in Mumbai’s commercial real estate market is indicative of strong investor confidence. Developers, investors, and high-net-worth individuals have made significant purchases in recent years. Steady rental profits and strategic expansion have driven this growth.

In a recent transaction, Tata Investment Corporation acquired two office properties totaling 42,743 sq ft in Mumbai’s Wadala area for nearly Rs 150 crore. In another transaction, HDFC Bank secured 4.50 lakh sq ft of space at an annual rental cost of more than Rs1,020 crore in Mumbai’s Andheri. 

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Tesla’s First India Showroom Debuts in Mumbai’s BKC with Record-Breaking Lease Deal

Tesla_Showroom_in_India

Tesla Inc. has taken a significant step in its India expansion by launching its first Tesla showroom in India at Mumbai’s prominent business district, Bandra Kurla Complex (BKC). The landmark lease agreement marks a milestone for the electric vehicle (EV) giant as it sets its sights on tapping into India’s burgeoning demand for premium electric cars.

Tesla’s India arm, Tesla India Motors & Energy, has leased a 4,003 sq ft unit from Univco Properties LLP for a five-year tenure according to documents accessed by CRE Matrix. The agreement, registered in the last week, stipulates that the lease will commence on February 16, with a rent-free period extending until March 31.

The agreement was signed between Tesla and Maker Group entity to lease space on the ground floor of the 2 North Avenue commercial complex at Maker Maxity. The deal, at Rs 881 per sq ft, surpasses the previous record set by Apple Inc., which leased space at Rs 738 per sq ft in January. This agreement reflects the increasing demand for prime commercial real estate in Mumbai’s BKC area.

The company has made an initial security deposit of Rs 2.11 crore. During the first year, Tesla will pay a monthly rental of Rs 35.26 lakh, which will escalate by 5% annually, reaching Rs 42.86 lakh in the final year of tenancy. Additionally, the agreement includes a 36-month lock-in period for Tesla, ensuring long-term stability, while the landlord is restricted from terminating the lease during the entire duration.

It is anticipated that Tesla’s flagship location in India will be the showroom at Maker Maxity, demonstrating the company’s dedication to the Indian market. Tesla has been actively exploring opportunities in the country, engaging in discussions with government authorities, scouting showroom locations, and assessing potential manufacturing sites.

India represents a promising market for Tesla, given the increasing shift toward sustainable mobility and the government’s push for electric vehicle adoption. By establishing the first Tesla car showroom in India, the company aims to strengthen its foothold in one of the world’s fastest-growing automobile markets.

The company is firmly establishing its long-term goals in India with the opening of the first Tesla showroom in Mumbai. The deal highlights the company’s strategy to not only introduce its popular range of EVs but also lay the foundation for future expansion, potentially including local manufacturing.

With the Tesla India making its entry, Indian consumers and EV enthusiasts eagerly await the arrival of its cutting-edge electric vehicles. This in time will pave the way for a greener and more technologically advanced automotive landscape in the country.