American Investment Banking Services Company, The Bank of New York Mellon Corporation (BNY Mellon) is in advanced talks to lease an entire tower with office space spread over nearly one million sq ft in Pune’s Kharadi locality from realty developer Prestige Group for a tenure of nine years.
BNY Mellon is close to leasing the office space at an annual rent of nearly Rs 82 crore, taking the total rental pay out to nearly Rs 738 crore over the entire tenure of the agreement, excluding the rental escalation.
The deal is expected to be concluded soon and will be the largest commercial real estate transaction so far this year. “BNY Mellon is likely to use the newly-leased office space to house it global capability center (GCC) through BNY Mellon International Operation (India) Pvt Ltd.
The lease agreement is likely to include a clause to escalate rentals 15% every three years. As part of the deal, the multinational bank will be picking up over 850,000 sq ft office space immediately and will also hold an option to extend the same over 150,000 sq ft.
The commercial tower Presitge Alphatech with total 17 floors is nearly completed and the New York- headquartered banking services company is expected to take possession to start its fit out work soon.
BNY Mellon’s Mumbai representative office was set up in 1983 and continues to serve as its key liaison point for the Indian client base. Its technology development, technology operations and remote infrastructure management services company, BNY Mellon Technology Pvt Ltd became a part of the BNY Mellon Group in 2003.
