Prime Highlight
- UBS Group AG’s India arm has leased an entire commercial tower in Pune, underscoring rising demand among global firms for managed and ready-to-use office spaces.
- The deal reflects a broader shift by multinational companies toward flexible enterprise office solutions to support expansion and operational efficiency.
Key Facts
- UBS Business Solutions India leased about 165,290 sq ft at Tech Park One on Airport Road, covering the ground to seventh floors and accommodating nearly 1,520 employees.
- The five-year agreement with Smartworks Coworking Spaces involves a starting rent of around Rs 240 per sq ft per month, a 5% annual escalation, and a total rental commitment exceeding Rs 263 crore.
Background
UBS Group AG’s India arm has leased an entire commercial tower in Pune’s Yerwada micro market under a long-term rental agreement valued at over Rs 263 crore, highlighting growing demand for managed office spaces among global firms.
According to property registration documents, UBS Business Solutions India has taken the ground floor to the seventh floors of a building at Tech Park One on Airport Road. The leased space spans around 165,290 sq ft and can accommodate nearly 1,520 employees. The lease started on January 15.
The space has been taken on lease from Smartworks Coworking Spaces under an enterprise office services agreement. UBS will pay a starting rent of about Rs 240 per sq ft per month. The agreement includes a 5% annual escalation over a five-year tenure, taking the total rental commitment beyond Rs 263 crore.
As part of the deal, UBS has paid a security deposit equal to six months’ rent, amounting to nearly Rs 23.8 crore. The agreement also grants the company external signage rights on the building. Smartworks had earlier leased the property from developer Panchshil Realty.
The lease gives the occupier flexibility and keeps the operator stable. Smartworks requires a 60-month lock-in, while UBS agreed to a 30-month lock-in, giving them room to adjust operations if needed.
Industry experts say the deal shows a trend of large multinational companies choosing fully furnished, ready-to-use offices instead of traditional empty spaces. Managed offices help firms grow faster, lower upfront costs and make daily operations easier.
Long-term enterprise deals give workspace providers steady occupancy and predictable cash flow. The Yerwada and Airport Road areas keep attracting global capability centres, financial services firms, and tech companies because they are close to the airport, have established business parks and enjoy better connectivity across Pune.
