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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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Mahindra Logistics Secures Long-Term Lease for 500,000 Sq Ft Warehousing Facility in Pune

Mahindra Logistics Secures Long-Term Lease for 500,000 Sq Ft Warehousing Facility in Pune

Mahindra Logistics, a prominent supplier of third-party logistics (3PL) solutions and part of the Mahindra Group has secured a long-term lease for 500,000 square feet of space in the Khed neighborhood of Pune according to documents accessed through CRE Matrix. With a total warehouse portfolio of more than 22 million square feet, the company has solidified its place as a significant player in India’s rapidly expanding logistics sector.

The warehouse, which is situated in Karanje Emerald Industrial Park, is leased for ₹1.15 crore a month for five years. A 5% annual rental escalation is included in the agreement after the first two years. To secure the lease, Mahindra Logistics registered the agreement on January 20 and gave a security deposit equal to three months’ rent. Although rental payments will begin on April 3, the license period formally began on January 3.

As per the agreement, the lease rentals are exclusive of Goods & Services Tax (GST), which will be borne by the tenant. However, the rentals do cover common area maintenance charges, with any additional utility or service costs falling under the tenant’s responsibility.

Mahindra Logistics has a strong presence in several important Indian marketplaces. This recent lease demonstrates the company’s dedication to expanding operations in response to rising demand. The company has stated that it currently manages over 22.1 million sq ft and continues to explore and assess new growth opportunities. Delivering outstanding value to stakeholders and customers, fostering innovation, and securing its position as a pioneer in integrated logistics solutions continue to be its top priorities.

A rise in e-commerce, changes in supply chain tactics, and the demand for effective distribution networks have all contributed to the notable expansion of India’s storage sector. 3PL businesses like Mahindra Logistics are growing to serve sectors like consumer products, retail, automobiles, and pharmaceuticals. The industry’s quick development is further facilitated by the move toward structured storage and the use of technology-driven solutions.

Recent Transactions

As businesses place more emphasis on well-located warehouses, Mahindra Logistics’ growth in Pune reflects the sector’s increasing significance in optimizing supply chains and facilitating a range of commercial activities. 

In a similar transaction last year, Indian multinational tyre manufacturing company, MRF leased 3.85 lakh sq ft of large warehousing space in the village Sudvadi, Mawal area of Pune district.

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Awfis Space Solutions Secures 1.97 Lakh Sq Ft Office Space in Pune’s Kharadi

Awfis Space Solutions Secures 1.97 Lakh Sq Ft Office Space in Pune's Kharadi

Co-working giant Awfis Space Solutions expands its footprint with a 197,000 Sq Ft lease in Pune’s thriving Kharadi over a five-year lease, according to documents accessed by CRE Matrix. 

For the initial three-month fit-out period commencing on January 1st, the company will pay a monthly rental of Rs 18 per square foot. After the initial three months, lease rentals will be structured based on a profit-sharing model with a minimum guarantee, as outlined in the agreement between the company and the developer. 

This transaction, registered on December 30th, involved a security deposit payment of Rs 8.87 crore from Awfis Space Solutions. The leased office space occupies all 17 floors of the commercial tower. The agreement includes a monthly common area maintenance charge of Rs 4 per square foot of carpet area.

Startups and small businesses are leaving behind traditional office setups and embracing the freedom of flexible workspaces. With hybrid work becoming the norm, who needs a massive office gathering most of the time? Coworking spaces and managed offices offer the perfect solution. This flexibility is a game-changer, especially in dynamic cities like Bengaluru, Mumbai, and Delhi-NCR. The market is exploding with options, from sleek, modern offices to cozy, creative workspaces.

Recent Office Transactions in Pune

Pune’s manufacturing and IT sectors are driving the city’s office market. Areas like Magarpatta City, Kharadi, and Hinjewadi are popular spots for businesses, with lots of modern office buildings popping up. You can find everything from big corporate towers to smaller, more flexible spaces, so there’s something for every company.

In a recent transaction, CA India Technologies Pvt. Ltd. Extended its Office Lease in Pune’s IT Hub with Annual Rent Exceeding ₹12 Crore. 

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MRF Leases 3.85 lakh sq. ft Warehousing Space in Pune’s Mawal Area

MRF Leases Warehouse

Indian multinational tyre manufacturing company MRF has secured the lease of 3.85 lakh sq ft of large warehousing space in village Sudvadi, Mawal area of Pune district. The Chennai-headquartered company has signed the lease deal with NDR Tradehouse for an initial monthly rental of approximately Rs 1.05 crore. It also has an escalation clause that will increase the annual rental by 4.5% every year. This suggests that there is a strong demand for warehouse spaces in India’s expanding logistics industry.

As per documents procured from CRE Matrix, this agreement was registered on 18 July for an initial five-year tenure with a provision for its extension of another five years. A lock-in period of three years ensures a minimum commitment from both parties. Additionally, MRF will pay common area maintenance charges of Rs 3.85 lakh per month and has made an upfront security deposit of Rs 3.14 crore, equivalent to three months’ rental payments. This provides financial security to NDR Tradehouse.

One of the unique features of this lease agreement is the provision for MRF to expand its warehousing space by an additional 2 lakh sq ft within three years. If NDR Tradehouse fails to provide this additional space when required by MRF, the lock-in clause will not be binding. 

In recent years, India has experienced a notable surge in the leasing of warehouse facilities. This is mostly due to the swift rise of e-commerce, the imposition of the Goods and Services Tax (GST), and the growing need for effective supply chain management. There has been an increase in warehouse leasing activity in major cities and developing industrial clusters as businesses look to improve distribution networks and optimize logistics.

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