The Executive Centre’s south Asia revenue up 18% in H1 2020 – ET RealEstate

BENGALURU: Flexible workspace provider The Executive Centre said its revenue in south Asia rose 18% in the first half of the year to $21 million while occupancy was up to 89% from 87%. Globally revenue was up 5% to $120 million.

Total number of workstations occupied as of June 30 increased by 14% compared to last year and client renewals was up to 62%. The company also opened 6 new centres in the same time. Notable new signings were from financial services & banking, IT and consulting sectors.

“It cannot be denied that the Covid-19 pandemic has been the main external factor impacting the performance of companies. As a result, the world of work is changing dramatically as businesses focus on managing costs to survive and look for workspaces with greater flexibility to support in office and remote working.

We have seen stronger demand coming from MNCs and domestic corporates since April across the Greater Bay Area and South-East Asia which helped to drive sustainable revenue growth and profitability in the first half of the year,” said TEC Founder and CEO, Paul Salnikow.

The company has 135 centres in 32 cities which include 30 centres spread over 8 lakh sqft in Mumbai, Gurgaon, New Delhi, Hyderabad, Bangalore, Chennai and Pune.



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Bengaluru: Godrej FM buys land worth about Rs 700 crore from Century Group – ET RealEstate

BENGALURU: Godrej Fund Management (GFM), the real estate-focused private equity arm of Godrej Group, has bought a land parcel in north Bangalore from Century Group in a deal valued around Rs 700 core.

GFM would develop a 700,000 sq ft commercial project on the new property and it would mark the company’s foray in the Bangalore property market.

“Century has sold a part of the 2.4 mn sqft office land and is looking to divest some land parcels and raise equity to generate liquidity,” said people aware of the deal.

This investment has been undertaken under the Rs 3,200-crore ‘Godrej Build to Core-I’ (GBTC-I) fund.

GFM has two funds—$450 million Godrej Build to Core and a $150 million Godrej Office Fund.

Jointly both the funds can invest and develop office assets worth over $1 billion in value.

“Century is in talks with Godrej Fund to monetise 15 acre land in North Bangalore as part of the land monetisation drive. The firm had sold land worth Rs 500 crore last year, ” said another person, who did not wish to be named.

Century Real Estate Holdings owns more than 2,500 acres of land across Bengaluru.

Century Real Estate, the firm with the largest land bank in Bengaluru, is foraying into commercial real estate and is targeting a commercial portfolio of 7 million sq ft over the next five years.

Besides, it plans to look at affordable segment development (Rs 50-60 lakh bracket) and plotted development.



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Ola Technologies to lease over 4.25 lakh sqft office space in Bengaluru – ET RealEstate

Ola is leasing 4.25 lakh sqft of office space in Bengaluru to costs by consolidating its various offices even as the company also looks to expand its operations across the city.

The new facility can seat over 4,000-5,000 employees and will come up in Prestige Startech in Koramangala, Bangalore.

The total tenure of the deal will be around 15 years with a rental escalation of 15% every three years.

“Ola currently operates out of 6-7 offices spread around 2.5 lakh sqft in Bangalore and will now move into one property as it looks to save cost,” said a source aware of the deal.

The centre will be used for Ola’s existing business including financial service and also to expand the electric mobility business for the firm.

“This is the largest real estate office deal post the lifting of lockdown,” said another person, who did not wish to be quoted.

Knight Frank that brokered the deal refused to comment, while Ola did not reply to a detailed email sent by ET.

Ola, India’s largest mobility platform, has recently restructured the business and is reducing overall staff strength by 5-8 per cent.

It currently serves clients across 250+ cities across India, Australia, New Zealand, and the UK.

India’s office space has seen large transactions in the last six months totalling over 11 million sq. ft. and there is an additional request for proposals for another 8 million sq. ft. office space.

Some of the large deals concluded recently with global majors like Google, Accenture, Microsoft, Morgan Stanley, Standard Chartered Bank and ANSR, across Indian cities.



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RMZ to sell commercial assets to Brookfield for around Rs 14,000 crore – ET RealEstate

NEW DELHI: Bengaluru-based realty firm RMZ has agreed to sell its completed commercial assets portfolio and co-working business to global investment firm Brookfield for an enterprise value of around Rs 14,000 crore as part of its strategy to become debt free, sources said. The two companies have already approached fair trade regulator CCI for approval of the proposed deal, they added.

RMZ has a total debt of around Rs 12,500 crore and it will become a debt free once the deal gets closed after regulatory approvals.

According to the sources, the company is selling between 15 million sq ft and 20 million sq ft area of completed commercial space, mainly offices with small portion of retail.

The proposed deal also includes complete divestment of the group’s co-working business CoWrks. The enterprise value for the entire deal is pegged between Rs 13,000-14,000 crore, the sources said.

After this deal, the company would still have around 5-6 million sq ft area of completed office space and another 35 million sq ft under construction, they added.

“We shall not be extending any comments,” a Brookfield spokesperson said while replying to an e-mail query.

Reply to query sent to RMZ was awaited.

The 17-year-old RMZ group has over 200 enterprise customers in six Indian cities and over 60 million sq ft of completed and under construction assets.

India’s office segment has been performing very well despite overall slowdown in the real estate market. The net leasing stood at record 47 million sq ft in 2019 and it may drop this year due to the coronavirus pandemic.

The office market is also attracting a lot of global institutional investment from players such as Blackstone, Brookefield and GIC.

Few years back, Singapore sovereign fund GIC had invested around Rs 9,000 crore for pick 33 per cent stake in commercial portfolio of realty major DLF.

Blackstone has made significant investments in commercial projects of Embassy group, K Raheja group and Salarpuria Sattva.

Prestige group is in advance discussions with global investment firm Blackstone to sell its various commercial assets for an estimated Rs 12,000-13,500 crore as part of its strategy to clear debt and achieve future growth, sources had said last month.



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