American multinational financial services major Wells Fargo & Company (with $1.92 trillion in assets) has leased an entire office building with more than 1.3 million sq ft space at DivyaSree’s Orion in Hyderabad, touted as one of the largest commercial real estate deals in India amid the Covid pandemic.
Sources say, the transaction is one of the biggest office space lease deals in the city so far, with Wells Fargo paying more than Rs 110 crore in annual rental for the built-to-suit office building, at a rate of Rs 70/sq ft/month.
The building which will have 21-23 storeys will house 10,000-12,000 employees. It is expected to be ready for fit outs in the next 6-8 months, and from there the company will take another 6-8 months for interior fit outs, making it ready for occupancy by end of 2021 or early 2022.
The agreement is for a lease tenure of nine years and the deal includes a rental reset clause at the end of every three years with 15 per cent escalation. Transaction advisor JLL India declined to comment.
“Hyderabad along with Bengaluru will bounce back with vaccine availability in the first half of next year. Fortune 500 companies such as Wells Fargo expanding in current times and going for fresh recruitment is a very positive sign for Hyderabad. There is a lot of confidence in the Telangana government and its proactive policies. The city is seeing both new companies foraying into Hyderabad and existing companies expanding their base,” a source said.
Founded in 1852 and headquartered in San Francisco, Wells Fargo has offices in 31 countries and territories to support customers who conduct business in the global economy.