UBS Secures Entire Office Tower in Pune’s Yerwada Under ₹263-Crore Managed Workspace Deal
UBS Secures Entire Office Tower in Pune’s Yerwada Under ₹263-Crore Managed Workspace Deal
Global financial services major UBS Group AG has significantly expanded its India footprint by leasing an entire commercial tower in Pune’s Yerwada area through a long-term managed office arrangement. The deal, signed by its Indian arm UBS Business Solutions India, involves a total rental commitment exceeding ₹263 crore and reflects the growing shift among multinational firms toward fully serviced, flexible workspaces.
The property is located at Tech Park One on Airport Road, a prominent business address in the city. Spread across approximately 165,290 square feet, the workspace is designed to accommodate around 1,520 employees. UBS has taken over the building from the ground floor up to the seventh floor, with the lease commencing on January 15.
Under the enterprise office services agreement, the starting rental has been fixed at roughly ₹240 per square foot per month. The contract includes a 5% annual rental escalation and spans a five-year tenure. In addition, UBS has deposited a security amount equivalent to six months of rent, totalling close to ₹23.8 crore. The agreement also grants the company external signage rights on the building, enhancing its brand visibility at the location.
The space is being operated as a fully furnished, managed office facility by Smartworks Coworking Spaces, which had earlier taken the property on lease from Panchshil Realty. The structure of the deal allows UBS to occupy a ready-to-use office without the need for heavy upfront capital expenditure, while Smartworks manages the day-to-day workplace operations.
As per the terms, Smartworks is bound by a lock-in period of 60 months, whereas UBS has committed to a 30-month lock-in. This arrangement balances operational flexibility for the occupier with long-term revenue assurance for the workspace operator.
The transaction highlights a broader trend in India’s office market, where large enterprises are increasingly opting for enterprise-grade managed offices instead of traditional bare-shell leasing. Such setups offer quicker scalability, predictable costs, and the ability to adapt to changing workforce needs.
For managed workspace providers, long-duration enterprise contracts like this ensure steady occupancy levels and stable cash flows. For occupiers, the model delivers speed, flexibility, and efficiency in setting up large offices.
The Yerwada and Airport Road micro market continues to gain prominence as one of Pune’s key commercial corridors, driven by its proximity to the airport, established IT and business parks, and improving connectivity to central business districts and areas such as Kharadi.
