Volkswagen Group’s Tech Arm Takes 1.23 Lakh Sq Ft Office Space in Pune
Volkswagen Group Technology Solutions India Pvt Ltd, the tech division of the German automotive giant, has leased approximately 123,000 sq ft of office space across three floors at the Embassy Tech Zone in Phase-II of the Rajiv Gandhi Infotech Park in Hinjawadi, Pune. According to documents obtained by FloorTap.com, the company will pay a starting rent of Rs 54 per sq ft per month, amounting to a total monthly rent of Rs 66,60,856.
Currently, Volkswagen has a facility on the 9th floor of a building, while the new lease encompasses the 5th, 6th, and 7th floors of another building within the Embassy Tech Zone campus.
Local market sources indicate that the rent is typical for Grade-A office spaces in the area, which generally ranges from Rs 50-60 per sq ft per month. Hinjawadi is home to numerous tech companies and an increasing number of global capability centers across various sectors, including automotive, medical equipment, and financial services.
The lease agreement spans 60 months, with a lock-in period of 36 months. Although the lease commenced on May 20, tenants have been granted a rent-free fit-out period until September 19, with rent payments starting on September 20. A 15% rent escalation is scheduled after 36 months from the start of the rent period.
The facility, owned by Embassy Office Parks REIT, also incurs maintenance charges of Rs 15.18 per sq ft per month, along with parking fees of Rs 2,500 per month for each of the 123 parking spots. Additionally, a security deposit of Rs 3.99 crore is required from Volkswagen Group Technology Solutions.
Most of Volkswagen Group’s operations in India, under its subsidiary Skoda Auto Volkswagen India Private Ltd, are based in Pune, with its main manufacturing facility located in Chakan, on the northern outskirts of the city. The company also operates a manufacturing facility in Shendra, near Aurangabad, Maharashtra, and has additional offices in Gurugram and Bengaluru.
This leasing deal reflects a robust leasing activity in India for the April-June quarter, with Colliers reporting new leasing in Grade-A office spaces at 15.8 million sq ft, an 8% increase compared to the same period last year. However, new leasing in Pune saw a decline of 41% during the same timeframe.
