Global financial services major UBS Group AG, through its India arm UBS Business Solutions India, has signed a long-term lease valued at over ₹263 crore for an entire commercial office tower in Yerwada, Pune, one of the city’s prime business districts.
The transaction involves a managed office facility operated by Smartworks Coworking Spaces at Tech Park One, located on Airport Road, Yerwada. The lease underlines the growing preference among large multinational corporations for fully managed, plug-and-play office spaces over traditional bare-shell offices.
Property and Lease Details
The leased commercial tower has a total leasable area of approximately 165,290 sq ft and is designed to support nearly 1,520 workstations. The lease is scheduled to commence from January 15, 2026.
UBS will pay a starting rental of around ₹240 per sq ft per month, with a 5 percent annual escalation built into the agreement. The total rental payout over the lease tenure is estimated at ₹263 crore.
In addition, UBS has deposited a security amount equivalent to six months’ rent, estimated at around ₹23.8 crore, and has also secured external signage rights on the building.
Key Transaction Details
Location: Tech Park One, Airport Road, Yerwada, Pune.
Space & Capacity: 165,290 sq. ft. across eight floors (Ground to 7th), featuring approximately 1,520 seats.
The Partner: The space is being provided by Smartworks Coworking Spaces, which recently leased the property from Panchshil Realty.
Financials: The agreement started on January 15, with a starting monthly rent of roughly ₹240 per sq. ft. and a 5% annual escalation over the five-year tenure.
Security Deposit: UBS has paid approximately ₹23.8 crore, equivalent to six months’ rent.
Flexible Deal Structure
The transaction is structured as an enterprise services agreement, meaning the office is delivered as a fully furnished, plug-and-play facility. The lease includes a 60-month lock-in period for the operator (Smartworks) and a 30-month lock-in for UBS, granting the bank operational flexibility while ensuring stable revenue for the provider. As part of the deal, UBS also retains external signage rights on the building.
Why Yerwada?
Yerwada and the Airport Road corridor have solidified their status as premier office hubs in Pune. The area is highly sought after by Global Capability Centres (GCCs) and BFSI firms due to its:
Proximity to Pune International Airport.
Strong connectivity to central Pune and Kharadi.
Availability of large-scale, ready-to-occupy corporate campuses.
The Managed Office Trend
This deal highlights a significant trend in the Indian commercial real estate market: large multinational corporations are increasingly outsourcing workplace management. By opting for managed offices over traditional "bare-shell" leases, companies like UBS can lower upfront capital expenditure, accelerate office setup times, and focus on core business operations while specialist operators handle the facility management.
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