In one of the rare sale and leaseback transactions involving an office property in India, global business process management company WNS Global Services has sold its office spread over 170,000 sq ft in Pune and leased it back for five years.
The company has sold the office spanning across five floors in Magarpatta Cybercity in Hadapsar locality for Rs 177 crore and leased it back at annual rentals of Rs 16 crore, allowing it to retain its existing workspace.
The company has sold the property at an effective rate of Rs 10,300 per sq ft and leased it at Rs 77.5 per sq ft a month. The lease agreement includes a clause to escalate rentals by 5% after every 12 months, showed documents accessed through realty data analytics platform Propstack.
The agreement to sell the office space spread over the third to seventh floor of tower 1 in the complex was concluded on January 22 and the lease agreement was executed the next day.
Sale and leaseback transactions are widely seen in the aviation and hospitality sectors but such deals have historically been less common in India’s office real estate sector. Sale and leaseback is a strategic financial transaction in which a company sells its owned property to a buyer, typically a real estate investor, and simultaneously leases it back from the new owner.
This arrangement allows the company to unlock capital tied up in real estate assets without disrupting its operations, as it continues to occupy and use the property under the lease terms.
The funds generated from such transactions can be used for various purposes, including reducing debt, financing expansion, or reinvesting in core business activities. By converting illiquid assets into liquid capital, companies can enhance their financial flexibility and support growth initiatives while maintaining operational continuity.
As of December end, WNS had 63,390 professionals across 66 delivery centres worldwide including facilities in the US, the UK, India, Canada, China, Costa Rica, Malaysia, the Philippines, Poland, Romania, South Africa, Sri Lanka and Turkey.
In India, it has offices in Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Gurgaon, Indore, Jaipur, Nashik, Noida, Trichy and Visakhapatnam.
ET’s email query to WNS Global Services remained unanswered until the time of going to press.
In September, renewable energy solutions provider Suzlon Energy entered into a similar transaction for its headquarters, One Earth, in Pune as part of its non-core asset monetisation plan.
The company sold the property for Rs 440 crore to OE Business Park Pvt Ltd (OEBPPL), a special purpose vehicle, shares of which are held by funds managed by 360 ONE Alternates Asset Management.
Following the sale transaction, the company leased its own headquarters back for a tenure of up to five years with sub-leasing and licensing rights. This was one of the first sale and leaseback transactions of any headquarters in India.
