In the largest commercial space transaction so far this year, London-headquartered multinational investment bank and financial services company Barclays’ India arm has entered into an agreement to pick up nearly 1.1million sq ft office space in K Raheja Corp’s Pune project on lease, said three persons familiar with the matter.
Through this transaction, the London and New York Stock Exchange-listed financial services company is setting up its single biggest office outside of the UK in India.
The total tenure of the lease agreement is 10 years with a clause for rental escalation every three years. The current rentals for the deal have been fixed at Rs 50 per sq ft a month, taking the total payout to over 660 crores. While the lease rentals have been set at 50 for now, it will, however, see an escalation of 15% every three years. Total rentals across the deal tenure of 10 years would be clearly over 660 crores.
“We at Barclays are constantly looking at ways to deliver the best outcome for our colleagues, customers, and clients. India is a crucial component of our growth plan and we remain deeply committed to growing our business and presence here,” a Barclays spokesperson said in a response to ET’s email query.
K Raheja Corp remained unanswered till the time of going to press, while transaction advisor JLL India declined to comment on the story. Setting up this new campus in Pune is in line with Barclay’s global location strategy to establish regional facilities to enhance flexibility and resiliency. IT Special Economic Zone Commerzone Kharadi is a joint development between K Raheja Corp and Pune-based realty developer Gera Developments.