Global steel major ArcelorMittal has leased around 1 lakh sq. ft. of office space in Pune’s Hinjawadi at a monthly rent of about Rs 63 lakh. The move signals continued GCC-led office demand in Pune, reinforcing the city’s role as a key hub for manufacturing and engineering-focused global capability centres.
Luxembourg-based steel giant ArcelorMittal has taken a significant step in strengthening its India operations by leasing nearly 1 lakh sq. ft. of office space in Pune’s Hinjawadi. According to lease documents accessed by Propstack, the company has committed to a monthly rental of approximately Rs 63 lakh for the space, which will be used to set up a new global capability centre (GCC). The transaction reflects the steady rise of Pune as a preferred destination for large multinational GCCs.
Details of the Lease Agreement
The office space has been leased under two separate agreements, starting in May 2025, covering a total of four floors within the property. The asset, Nalanda SEZ IT Park, is owned by Temasek-backed CapitaLand India Trust (CLINT), which acquired it for Rs 773 crore in 2024 and rebranded it as aVance-II. The property is located close to CLINT’s other major office development in the area, aVance, reinforcing Hinjawadi’s position as a prime commercial cluster.
Rental Structure and Lease Terms
Both lease agreements are for a tenure of five years. For the smaller portion measuring 25,581 sq. ft., ArcelorMittal is paying a monthly rent of Rs 85 per sq. ft., with an annual escalation of 5%. The larger lease, covering around 77,000 sq. ft., is priced at Rs 53 per sq. ft. per month and includes a security deposit of Rs 2.05 crore. Rentals under this agreement are set to increase by 15% every three years, as per the lease documents.
GCC-Led Demand Strengthens Pune’s Office Market
Market sources indicate that the leased space will house ArcelorMittal’s global capability centre. Pune has emerged as a major GCC hub, particularly for manufacturing-led industries such as automobiles, engineering, avionics, medical devices, and industrial technology. The city’s strong talent pool, established industrial ecosystem, and availability of Grade-A office stock continue to attract global corporations setting up high-value back-end and innovation operations.
Confidence in Grade-A Office Assets
The transaction also highlights sustained investor and occupier confidence in institutional-quality office assets. CLINT’s acquisition and repositioning of the property underline the appeal of well-located SEZ and IT park developments in Pune’s western corridor. Large occupiers like ArcelorMittal opting for long-term leases further support stable cash flows and long-term occupancy for such assets.
ArcelorMittal’s India Strategy in Focus
ArcelorMittal, promoted by Lakshmi Niwas Mittal, is among the world’s largest steel producers and currently ranks second globally by production. The company has a strong manufacturing presence worldwide, including in India through its joint venture with Nippon Steel, ArcelorMittal Nippon Steel India. The Pune lease aligns with the company’s broader strategy of expanding its global operations and leveraging India’s talent base for strategic and technical capabilities.
Outlook for Office and Flexible Workspaces
As more global manufacturers and engineering firms set up GCCs, cities like Pune are expected to see continued demand for large-format, flexible, and future-ready office spaces. Deals such as ArcelorMittal’s reinforce the role of GCCs as a key growth driver for India’s commercial real estate market in the years ahead.
