Global financial services firm UBS Group AG’s Indian subsidiary has signed a long-term lease for a complete commercial tower in Pune’s Yerwada area with Smartworks Coworking Spaces, with total rental costs exceeding Rs 263 crore.
The managed office facility at Tech Park One on Airport Road encompasses approximately 165,290 square feet and accommodates about 1,520 workstations. The lease spans the ground through the seventh floor and began on January 15.
According to property registration documents reviewed by RealtyDailyNews, UBS Business Solutions India, the subsidiary based in Zurich, will pay an initial rent of around Rs 240 per square foot per month, with a 5% annual increase over a five-year period. A security deposit equivalent to six months’ rent, totaling around Rs 23.8 crore, has also been made. UBS will enjoy external signage rights for the building as part of the sub-lease agreement. Smartworks recently leased this property from Panchshil Realty.
This deal highlights the trend towards enterprise services agreements for fully furnished, managed office environments, as large companies show a growing preference for flexible, ready-to-use workspaces instead of traditional bare-shell leases.
The lease stipulates a 60-month lock-in period for Smartworks Coworking Spaces Ltd, while UBS has committed to a 30-month lock-in, ensuring operational flexibility for the tenant and revenue stability for the operator.
This transaction illustrates the increasing prevalence of enterprise-grade managed office deals in India, where major multinational corporations are outsourcing workplace management to specialized providers.
For workspace providers, such long-term enterprise contracts promise predictable occupancy and stable cash flows. Meanwhile, occupiers enjoy rapid expansion, lower upfront capital expenditure, and operational flexibility.
Queries from RealtyDailyNews to UBS and Smartworks via email were not answered by publication time.
Yerwada and the Airport Road micro-market have become significant office corridors in Pune, benefiting from proximity to the airport and established IT and business parks, as well as improved connections to central Pune and Kharadi. The area has seen consistent demand from global capability centers (GCCs), banking and financial services firms, and tech companies looking for large, ready-to-occupy campuses.
