Citigroup Inc has secured more than 7.7 lakh sq ft office space across ten floors in a commercial tower located in Pune’s Kharadi locality, through a long-term lease agreement lasting up to ten years, with a total value of approximately Rs 1,100 crore. This transaction represents the largest commercial office space deal completed this year, both in terms of area and financial magnitude.
The entire space is spread over 7th to 16th floor of Panchshil Business Hub,with monthly rental prices starting from approximately Rs 2.02 crore to Rs 2.71 crore, varying by floor. The lease is set to begin on April 1, and the contract stipulates a rental increase of 15% every 36 months, along with a lock-in period of 4 to 5 years, depending on the specific floor.
Of the total space, over 3.07 lakh sq ft chargeable area is on the 13th, 14th, 15th, and 16th floor, 2.34 lakh sq ft is on the 10th, 11th, and 12th floor, while remaining 2.29 lakh sq ft is on the 7th, 8th, and 9th floor of the tower, showed documents accessed through CRE Matrix.
Citigroup has secured this space through its subsidiary, Citicorp Services India. The overall value of the agreement encompasses both rental payments and common area maintenance (CAM) fees for the duration of the lease. The CAM fees, which include an annual increase of 5%, are projected to total nearly Rs 197 crore.
As part of the deal, Citigroup will also get exclusive access to a total 770 car parking slots and 1,185 two-wheeler parking spaces in the tower. The company is expected to pay Rs 6,000 per car and Rs 2,600 per two-wheeler for any additional parking space.At the time of the deal’s registration on March 12, the company submitted a total security deposit of approximately Rs 20.36 crore.
Citicorp Services India operates as a captive unit, handling functions such as risk management, compliance, information technology services, analytics, and financial operations.
Citicorp Services India is a subsidiary of Citigroup Inc., the parent company of Citibank. It mainly provides back-office, technological, and operational support services to Citigroup’s worldwide operations, encompassing Citibank.Although it operates separately from Citibank India, which provides banking and financial services directly to clients, both organizations are integrated within Citigroup’s larger corporate framework.
