UBS Business Solutions India has leased an entire commercial tower in Pune’s Yerwada micro-market through a long-term managed office agreement with Smartworks. Valued at over ₹263 crore, the deal reflects rising demand from global occupiers for flexible, fully serviced, enterprise-grade office spaces in key Indian cities.
Global financial services major UBS Group AG has taken a significant step in India’s flexible office market by leasing an entire commercial tower in Pune’s Yerwada micro-market. Through its Indian arm, UBS Business Solutions India, the firm has entered into a long-term managed office agreement with Smartworks Coworking Spaces, with a total rental outgo exceeding ₹263 crore.
The transaction involves a fully operational office facility located at Tech Park One on Airport Road. Spanning approximately 165,290 square feet, the space accommodates approximately 1,520 seats and extends from the ground floor to the seventh floor of the building. The lease commenced on January 15, according to property registration documents.
Lease Structure and Commercial Terms
Under the “enterprise office services agreement”, UBS has taken the space at a starting rental of about ₹240 per square foot per month. The lease includes a 5% annual escalation over a 5-year term, providing the operator with long-term revenue visibility. UBS has also paid a security deposit equivalent to six months’ rent, amounting to roughly ₹23.8 crore.
As part of the sub-lease arrangement, the occupier will receive external signage rights on the building, strengthening brand visibility within the micro-market. Smartworks had recently leased the property from Panchshil Realty, further highlighting the layered leasing structures increasingly seen in managed office transactions.
Managed Offices Gain Enterprise Preference
The deal is structured as a fully furnished, plug-and-play setup, reinforcing the shift among large occupiers toward flexible, managed workspaces rather than traditional bare-shell offices. Such arrangements allow enterprises to scale faster, reduce upfront capital expenditure, and outsource day-to-day workplace management to specialised operators.
The agreement includes a 60-month lock-in period for Smartworks Coworking Spaces Ltd, while UBS has committed to a 30-month lock-in. This structure balances flexibility for the occupier with predictable cash flows for the workspace provider, a model that is gaining popularity in large enterprise transactions.
Growing Momentum in Enterprise Flex Deals
Industry observers note that the transaction underlines the rising scale of enterprise-grade managed office deals in India. Multinational corporations, particularly in banking, financial services, and technology, are increasingly adopting the “workspace-as-a-service” model to support hybrid work strategies and rapid team expansion.
For workspace operators, long-term enterprise contracts provide stable occupancy and recurring revenue, while occupiers benefit from operational agility and faster time-to-market. The UBS–Smartworks deal reflects this alignment of interests as the flex office segment matures.
Yerwada Emerges as Key Office Corridor
Yerwada and the Airport Road micro-market have emerged as one of Pune’s prominent office destinations, driven by proximity to the airport, established IT and business parks, and improving connectivity to central Pune and Kharadi. The area has seen consistent demand from global capability centres, BFSI firms, and technology companies seeking large, ready-to-occupy office campuses.
As India’s office market evolves, transactions like this signal sustained confidence in managed office platforms and reinforce Pune’s position as a key hub for enterprise workspace demand.
