American Investment Company BNY Mellon Contemplating To Lease 1 Million SqFt in Kharadi, Pune

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American Investment Company BNY Mellon Contemplating To Lease 1 Million SqFt in Kharadi, Pune

Investment banking firm might lease 1 million square feet of office space in Presting Tower for nine years.

Mumbai:

The Bank of New York Mellon Corporation (BNY Mellon) is in advanced negotiations to lease an entire tower with nearly 1 million square feet of office space in Pune's Kharadi neighbourhood from real estate developer Prestige Group for a period of nine years, according to sources with direct knowledge of the development.

BNY Mellon is close to leasing the office space at an annual rent of nearly Rs 82 crore, bringing the total rental payment over the duration of the agreement to nearly Rs 738 crore, excluding rental increases. The transaction is anticipated to close shortly and will be the largest commercial real estate transaction of the year.

The lease is likely to contain a clause that increases rent by 15% every three years. As part of the agreement, the multinational bank will acquire over 850,000 square feet of office space immediately, with an option to add an additional 150,000 square feet.

The 17-story commercial tower Prestige Alphatech is nearing completion, and the New York-based financial services company is expected to take possession shortly to begin fit out work.

BNY Mellon's representative office in Mumbai was established in 1983 and continues to function as its primary point of contact with its Indian clientele. BNY Mellon Technology Pvt Ltd, which provides technology development, technology operations, and remote infrastructure administration services, joined the BNY Mellon Group in 2003.