Landmark deal: CitiCorp leases office in Pune for Rs 1,096 cr for 10 years

 In one of the largest commercial office space rental deals in Pune’s real estate market, CitiCorp Services India Pvt Ltd has secured a lease for over 7.7 lakh square feet of office space from Panchshil Business Spaces Pvt Ltd. The deal, which spans approximately 10 years, is valued at an estimated Rs 1,096 crore, according to property registration documents obtained by CRE Matrix, a real estate consultancy firm.

 

The office space was leased through three separate transactions, each covering different floors across the building. The first transaction involves 3.07 lakh square feet on the 13th, 14th, 15th, and 16th floors, with a 10-year lease commencing at a monthly rent of Rs 2.70 crore.

 

 

The second transaction covers 2.34 lakh square feet located on the 10th, 11th, and 12th floors, with a lease term of 9.5 years and an initial monthly rent of Rs 2.06 crore. Finally, the third transaction includes 2.29 lakh square feet across the 7th, 8th, and 9th floors, leased for a period of 9 years, starting at Rs 2.01 crore per month.

 

Each of these transactions includes a 15% rent escalation clause every 36 months, as per the documents. The leases were officially registered on March 12, and the lease commencement is staggered, with phases starting between April 1, 2025, and April 1, 2026.

 

Additionally, the commercial space lease includes 770 car parking spaces and 1,185 two-wheeler parking spaces, providing ample parking for CitiCorp’s employees and visitors. As part of the deal, CitiCorp Services India Pvt Ltd has also made a security deposit of ₹20.35 crore.

 

The deal has a lock-in period of 4 to 5 years for all three transactions, ensuring stability for both the tenant and the landlord. This landmark transaction is expected to boost the commercial real estate market in Pune, reinforcing the city's growing status as a hub for business and corporate offices.

 

"This Citi Corp deal in Pune, securing over 770,000 sq. ft. at Rs 88 per sq. ft., is a landmark moment. It underscores the continued strength and strategic importance of Pune's commercial market, a fact we highlighted in our Q4CY24 India Office report.  The transaction, one of the largest we've seen, solidifies Pune's position as a prime destination for corporate expansion, particularly when we observe the overall trend of large transactions exceeding 100,000 sq. ft., which saw a 41% increase, especially in Bengaluru and Pune," said  Abhishek Kiran Gupta, CEO & Co-founder, CRE Matrix.

 

The sheer scale of the 10-year, Rs 1000 crore-plus commitment demonstrates the long-term value and confidence major corporations place in Pune City. "This deal reinforces our analysis and affirms why Pune remains a top choice for strategic growth," said Gupta.