315Work Avenue lease out 12,650 sq ft space in Bengaluru to Tata Technologies – ET RealEstate

BENGALURU: 315Work Avenue, a coworking space provider has leased 12,650 sqft of office space to Tata Technologies, a global engineering and product development digital services company in ORR, Bangalore.

The new facility will house Tata Technologies’ design studio, lab stations, meeting and conference rooms, and a wellness centre and will leverage its expertise in electric and embedded systems.

Manas Mehrotra, Founder, 315Work Avenue said: “The entire space was custom crafted as per the requirement of the client within 2 months despite the challenges posed by the Covid-19 pandemic”.

315Work Avenue currently manages around 12,000 seats spread over 6,00,000 sq ft across multiple prime locations in Bangalore. 315Work Avenue plans to beef up its total portfolio to 1 million sq ft by next year with a focus on south and west India, while further strengthening its presence in Bangalore.

“We believe that the need for flexible space will only rise in the current scenario, as corporates will look to cut capex on setting up own offices. It will also help them remain agile and retain flexibility to adjust operations based on the market conditions. We have already achieved phenomenal growth in a short period and our priority now is to deepen the penetration in existing markets and enter newer cities. Bangalore will continue to play an integral role in our overall growth journey. We are also open to acquire smaller players in strategic pockets in tier one cities for further expansion,” said Manas.

According to an industry estimates, Bengaluru continues to be the market leader with gross office space absorption of 0.50 million square meters in the first half of 2020.

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Tata Realty plans to list 20-million-sq-ft commercial assets portfolio as REIT – ET RealEstate

MUMBAI: Tata Realty & Infrastructure (TRIL) is planning to list its Real Estate Investment Trust (REIT) with around 20-million-sq-ft of commercial assets in the next couple of years.

The real estate development arm of Tata Group is looking to expand the size of its commercial portfolio to over 20 million sq ft from current ready and fully leased 6.2 million sq. ft. through new developments and acquisitions.

“Our existing land bank has potential of 20 million sq ft commercial property development in the next 3-4 years and we have additionally signed 3 term sheets that would give us 20 million sq ft more space,” Sanjay Dutt, MD & CEO, Tata Realty & Infrastructure, told ET.

Apart from office spaces, the portfolio to be listed as a REIT may also include some data center assets.

The company is already receiving proposals from developers looking to monetise their portfolios given the cash crunch in the sector.

In the last two months alone, Dutt’s team has looked at four such proposals including single assets and carved-out portfolios across key geographies in the country.

“So, we are targeting a 45- 50 million sq. ft. in commercial portfolio in over 7 years. However, as we are developing several built- to-suit projects for clients, the pace would stand accelerated,” he said.

The company has managed to achieve nearly 15% rental growth in the financial year ended March through its existing 6.2 million sq ft ready and leased commercial portfolio and expects a similar growth number this year as well despite the pandemic.

According to Dutt, the first quarter ended June saw an 8% upside in rentals and is expected to be 11% on an average by the end of the year.

“Financing of this future growth has been taken care of as the holding company Tata Sons has ensured equity infusion into Tata Realty. Apart from active and potential investors, sale of malls, monetisation of assets and inventories will ensure enough capital infusion for the same,” he said.

The company has sold around Rs 2,000 crore worth of residential inventory in the last two years.

TRIL has a healthy pipeline of office projects that are coming up and will be branded as Intellion.

The ongoing 1-million-sq-ft development in Gurgaon is expected to be ready by November along with an additional 1 million sq ft in the city to be ready by next year.

It also has a 47-acre plot in Navi Mumbai, where 0.5 million sq ft of development is expected to commence soon and the company is also in advanced stage of signing a pre-lease pact for a 0.8-million-sq-ft built-to-suit campus for a global entity.

According to Dutt, apart from land parcels and greenfield projects, some companies are even offering projects that have already received sanctions and approvals.

“It would be possible to take up these projects at a slightly lower cost because nobody would expect rents to go up sharply, except where the agreement is already in place,” he said.

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