CitiCorp Leases 7.7 Lakh Sq. Ft. Office Space in Pune’s Kharadi for ₹1,096 Crore, Marking a Major Commercial Deal

In one of the largest commercial leasing deals in Pune’s real estate market, Panchshil Business Spaces Pvt Ltd has leased over 7.7 lakh square feet of office space to CitiCorp Services India Pvt Ltd for a period of approximately 10 years. The total rent for the lease agreement amounts to around ₹1,096 crore. This deal further highlights Pune’s rising significance as a key destination for corporate expansion in India.

The leased office space is located in the Panchshil Business Hub at Kharadi, one of the city’s most sought-after commercial areas. Spanning 10 floors between levels 7 and 16, the space was leased in three separate transactions, each with different terms:

• Transaction 1: 3.07 lakh square feet across the 13th, 14th, 15th, and 16th floors, leased for 10 years, with a monthly rent starting at ₹2.70 crore.
• Transaction 2: 2.34 lakh square feet on the 10th, 11th, and 12th floors, leased for 9.5 years, with a starting monthly rent of ₹2.06 crore.
• Transaction 3: 2.29 lakh square feet across the 7th, 8th, and 9th floors, leased for 9 years, with a starting monthly rent of ₹2.01 crore.

All three transactions include a rent escalation clause of 15% every 36 months, which is a common feature in long-term leases. The total lease term spans between 9 to 10 years, and the lease commencement dates are staggered, with the lease period beginning between April 1, 2025, and April 1, 2026, depending on the transaction.

The commercial space also comes with a significant number of parking spaces. CitiCorp Services India Pvt Ltd will have access to 770 car parking spaces and 1,185 two-wheeler parking spaces, which is essential for a business of such scale. Additionally, the company has paid a security deposit of ₹20.35 crore, and the lock-in period for the lease is set at 4 to 5 years.

According to property registration documents reviewed by CRE Matrix, this deal has set a new benchmark for the Pune commercial real estate market. Abhishek Kiran Gupta, CEO and co-founder of CRE Matrix, highlighted that the deal demonstrates the continued strength of Pune’s commercial market. Gupta further noted that this is one of the largest commercial leasing deals observed in the region, particularly in the context of large office space transactions. The deal’s value also underscores Pune’s position as a prime location for corporate growth. Gupta mentioned that large transactions like this one indicate that Pune remains a preferred choice for businesses looking to establish or expand their operations in India.

Pune's Commercial Real Estate Strength

This deal is part of a broader trend in Pune, where several major commercial office leasing transactions have taken place recently. Another significant deal saw the co-working firm Awfis lease 2.7 lakh square feet of commercial space in the Kharadi area for an annual rent of ₹15.77 crore. This lease, which spans five years, demonstrates the growing demand for office space in Pune, particularly in the Kharadi region.

In addition to office leasing, Pune's real estate market has also seen substantial land transactions. For example, Prestige Exora Business Parks recently acquired a 4.57-acre land parcel for ₹200 crore, further contributing to the market’s ongoing growth. These trends reflect the increasing confidence in Pune’s commercial property sector, driven by both local and national companies seeking office space in the city.

The city is increasingly becoming a preferred destination for businesses from a range of sectors, including information technology, finance, and professional services. The availability of large office spaces in prime locations like Kharadi makes Pune an attractive option for companies looking to set up or expand their operations.

Other Notable Commercial Real Estate Transactions in Pune

Pune’s commercial real estate market has been marked by several large transactions recently. In September 2024, Mindspace Business Parks REIT renewed its lease for 3.75 lakh square feet of office space in Commerzone, Pune’s Yerwada area, for Nvidia Graphics Private Limited, at a monthly rent of ₹3.03 crore. This renewal highlights the stability and long-term value that major companies place in Pune’s office space market.

In another significant deal, Morgan Stanley leased 1 million square feet of office space in Mumbai for over nine years, with a starting monthly rental of ₹15.96 crore. This deal is one of the largest commercial leasing agreements in India and further illustrates the growing demand for office space across major cities like Pune and Mumbai.

The recent lease agreement between Panchshil Business Spaces Pvt Ltd and CitiCorp Services India Pvt Ltd is a landmark deal in Pune’s real estate sector, reflecting the city’s continued growth and its increasing importance as a destination for corporate expansion. With the ongoing trend of large commercial leasing deals, Pune’s real estate market remains strong and poised for further growth.