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 built-to-suit campus in K Raheja Corp’s IT park Commerzone Kharadi in Pune will be developed over the next two years and will accommodate around 9,000 employees who would cater to the British investment bank’s operations across 40 countries.
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 Rs 660 crore. “While the lease rentals have been set at Rs 50 for now, it will, however, see escalation of 15% every three years. Total rentals across the deal tenure of 10 years would be clearly over Rs 660 crore,” said one of the persons mentioned above.
The facility will house Barclays Global Service Centre, erstwhile Barclays Technology Centre of India, which provides end-to-end technology and operations solutions and services to Barclays’ businesses globally. This company employs more than 16,000 people across its offices in Pune, Chennai, Mumbai and Noida.
In addition to expanding its capacity significantly, the new campus will also consolidate all teams currently working in various locations in Pune. These teams will start moving into the new campus from mid-2019 in phases.
“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.
An email sent to 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.
Prior to this transaction, in the single largest office space transaction in the country, India’s top software exporter Tata Consultancy Services had recently picked up 1million sq ft commercial realty space on lease at International Tech Park Bangalore (ITPB) from Temasek Holdings-JTC Corporation-owned Ascendas-Singbridge Group.
Last year, Accenture India and digital services firm Atos leased two lakh sq ft of commercial space each at K Raheja Corp’s IT park Gigaplex in Navi Mumbai.
In May, Microsoft signed a 15-year lease deal for nearly 2 lakh sq ft office space at Knowledge City in Hyderabad with plans to pick up another 2,50,000 sq ft of space in its next phase of expansion. In December, TCS itself had picked up around 2.50 lakh sq ft of commercial space at Godrej & Boyce’s factory premise in Mumbai’s eastern suburb Vikhroli on lease.
Annual office space absorption across India was around 42 million sq ft last year, and this was mainly driven by the IT sector with nearly one-third share. Other segments that contributed to the overall growth included banking, financial services and insurance, engineering and manufacturing and research consulting and analytics.