Gesture & NDR Group to develop three lakh sq ft co-living space in Bengaluru – ET RealEstate

Coliving-operator Gesture has entered into an agreement with Chennai-based NDR Group to convert a warehouse to a coliving space spread over 3 lakh sq ft in Whitefield, Bangalore.

“It’s a fixed rental model arrangement with NDR, Gesture will build and operate the facility for them,” said Sriram Chitturi, Founder, Gesture.

Gesture is also ramping up presence in the segment and plans to roll out 20,000 beds over the next decade in rented living space. The firm that currently has 3150 beds operational and is in talks with investors and landlords to build more such properties. “”The pandemic has impacted the demand for coliving space but it is expected to pick up in future as people look for working closer to the office,” said Chitturi.

The emergence of co-living and rental accommodation start-up has redefined the concept of urbanization in India. As Work From Home(WFH) culture takes precedence, co-living start-ups are also gearing up with designs that cater to the new normal. This ensures business continuity for companies while employees are encouraged to work from the comforts of their living instead of having to move to their hometown.

Many organizations are collaborating with startup co-living companies to provide fine rental accommodation for their employees so that they don’t have to worry about going back to their hometowns. “We expect demand to pick up post June as companies ramp up presence in the offices,” he said.

Co-living is a modern concept popular in metropolitan cities where like-minded people live in the same house with common kitchen, lounge, work area, etc. with shared and private rooms.

The Indian co-living market is at a nascent stage and has only a few organised players like Zolo, Nestaway, and Olive.

However, the trend is catching up in the major cities as the housing market begins to lean away from the proprietorship and towards a service model. Rents for a shared living accommodation range from Rs 6,000 to Rs 20,000 a month, while for individual living it can range between Rs 18,000 to Rs 25,000.

As per the reports by Federation of Indian Chambers of Commerce & Industry ( FICCI ) co-living and rental space in India is set to grow into a1 trillion market opportunity by 2023.The expected Compound Annual Growth Rate of co-living market in the country is 17% in the next five years.

The report indicates that the supply of beds by organised co-living players is expected to increase to about 541,000 across the top seven cities by 2023, with Delhi and Bengaluru accounting for more than 50% of this cumulative capacity.

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Bengaluru development body to build apartment complex in Konadasapura – ET RealEstate

BENGALURU: Even as the Bengaluru Development Authority (BDA) is struggling to sell nearly 3,000 flats located mostly in the outskirts of the city, its love for constructing new apartments has not diminished.

The authority has put forth a new proposal with regard to building a premium apartment complex on the 130-acre land in Konadasapura near Whitefield. The plan has also received a green signal from Chief Minister BS Yediyurappa, it’s learnt.

“We have prepared architectural designs of the apartment complex,” HR Mahadev, BDA Commissioner told BM. “We have been unable to sell some flats due to various reasons ,including inadequate facilities and poor marketing. The apartment which we plan to build in Konadasapura will be good both in terms of aesthetics and quality. We are confident that the flats will find enough buyers,” he said.

This is not the first apartment complex that the authority has proposed to build in Konadasapura. The BDA is currently building a residential unit, comprising of 500 flats in the same surrounding. Engineers have also awarded the contract of building another 1,300-flat residential complex in this locality. While one is currently under construction, the other project is yet to take off, although the contract was awarded around two years ago when the Congress-JD(S) coalition government was in power. It comprises 22 blocks, each having 14 floors.

We have been unable to sell some flats due to various reasons, including inadequate facilities and poor marketing–HR Mahadev, BDA Commissioner

Officials said the proposed premium complex may get only about 40 acres of space. “Out of the 130 -acre of land owned by us, we have leased 20 acres to a German-based car manufacturing company that has proposed to set up a R&D centre. All of the remaining space cannot be used for the complex,” a junior BDA official said. As per the conceptual planning, the BDA plans to build an intergrated township comprising of commercial and luxurious residential units.

RTI activist BM Shivakumar said the BDA should stop constructing apartments if they are pricing it as high as private players. “It is commonly known that the BDA flats are designed poor and lack quality. This is mainly because 30-40 per cent of the budgeted cost is grabbed from the builder as commission by engineers and officials.

What quality can be expected from the remaining funds,” he said.

Shivakumar, who is also the president of Jayaprakash Narayan Vichara Vedike, said that the land in Konadasapura where the BDA is building apartments, was originally acquired for setting up a steel manufacturing hub. “The BDA had acquired land from farmers by paying just Rs 5 lakh per acre through a notification issued in 1996. Will the farmers, who hoped the manufacturing hub would create job opportunities, keep quiet if the land is used for some other purpose?” he asked.

Failed project

The BDA has acquired several acres of land from 160 land owners for establishing a steel manufacturing yard by taking a loan of Rs 10 crore from HUDCO. At the time of issuing notification in 1996, the authority had provided a compensation of Rs 4 to Rs 5 lakh per acre and by assuring employment for locals. The steel yard, however, never came up.

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Land hurdles between Byappanahalli, KR Puram delay Bengaluru Metro – ET RealEstate

BENGALURU: Metro work on the Seetharampalya (Visvesvaraya Industrial Area)-Whitefield section is progressing fast. However, land acquisition problems between Byappanahalli and KR Puram are delaying the Byappanahalli-Whitefield corridor.

In 2017, BMRCL had awarded the contract for the 15km elevated Byappanahalli-Whitefield corridor to ITD Cementation India Ltd and it was supposed to be ready by 2020. The deadline was extended to August 2021 and has now been revised to June 2022. The corridor under Metro’s Phase 2 is an extension of the existing Purple Line (Mysuru Road-Byappanahalli) and will have 13 stations.

BMRCL statistics show 95% of civil work between Seetharampalya and Whitefield has been completed till October. For the Byappanahalli-Seetharampalya section, the figure is 80%.

On Friday, ITD Cementation completed all segmental spans (2,125 segments) of viaduct between Seetharampalya and Whitefield. The section will have stations like Kundalahalli, Nallurhalli (Vydehi Hospital), Sadaramangala (Satya Sai Hospital), Pattandur Agrahara (ITPB), Kadugodi, Channasandra (Ujjval Vidyalaya) and Whitefield.

Pabitra Roychoudhury, project manager, ITD Cementation, said: “The work was taken up in a heavily congested area but we took all safety precautions. The section has critical curves but we successfully completed it with BMRCL help.”

But it’s still not clear whether BMRCL will commence commercial operations between Seetharampalya and Whitefield instead of waiting for commissioning of the entire line. Experts say it could start services once the Kadugodi depot work is over. In October 2019, BMRCL had awarded the contract for construction of depot structures, site development work, internal roads and drainage to Vascon Engineers Ltd at a cost of around Rs 160 crore. The work is supposed to be completed in two years.

However, land acquisition between Byappanahalli and KR Puram is mired in legal wrangles. Officials said they are yet to acquire 61 properties and need permission to relocate around 60 trees near Benniganahalli Lake. “We are planning to acquire the properties for road widening work between Jyothipura and KR Puram railway station, which is expected to be completed by December. We are yet to get nod to remove the trees,” said a BMRCL official.

This means the 8km Byappanahalli-Seetharampalya section will take at least two more years. Stations on the route include Benniganahalli (Jyothipura), KR Puram, Saraswati Nagar (Mahadevapura), Gurudacharpalya and Hoodi Junction (Doddanekundi).

BMRCL sources said since Benniganahalli station may get delayed, they are planning to operate trains between Whitefield and Byappanahalli via KR Puram without the station. It will be constructed later. Managing director Ajay Seth was unavailable for comments.

Three Metro lines — Byappanahalli-Whitefield, ORR-Kempegowda International Airport and depot entry line — will pass through Tin Factory junction. The section between KR Puram station and Tin Factory will have a six-lane road on the southern side and five-lane one on the northern side. A two-lane additional flyover from Tin Factory to Kasturinagar is also part of the road infrastructure, the official added.

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Hong Kong’s TEC leases one lakh sq ft office space in Mumbai, Bengaluru – ET RealEstate

NEW DELHI: Hong Kong-based The Executive Centre (TEC), which provides premium serviced office space, has taken on lease one lakh sq ft of office space in Mumbai and Bengaluru to expand its business in India despite COVID-19 pandemic, a top company official said.

TEC entered India in 2008 with its first property in Mumbai. At present, it has around 30 centres in India spread over 8 lakh sq ft with a capacity of 8,000 desks, across major cities.

In an interview, TEC Managing Director-South Asia Nidhi Marwah said: “We have signed two leasing agreements in Mumbai and Bengaluru on pure rental basis.”

TEC has leased 60,683 sq ft of office space in Bandra Kurla Complex (BKC) and 40,000 sq ft in Whitefield, Bengaluru.

Marwah said the company is targeting to open these two centres by March 2021.

Asked about the office space demand during the COVID-19 pandemic, she said the demand for Grade-A office space remains intact and rentals stable.

Besides IT industry, Marwah said there are enquiries for serviced office space from new industries like pharma, banking, and consultants.

She said corporates do not want to invest in setting up their own offices and are looking for flexible office space.

“We are currently operating at an occupancy level of around 85 per cent and our monthly rental collection is also above 90 per cent,” she said.

In June, Marwah had announced TEC’s plan to open five new centres by March 2021 at Bengaluru, Gurugram, Chennai and Pune with an investment of Rs 100 crore. These five centres will have a total of two lakh sq ft area with a capacity of around 2,300 desks.

“We will soon open our new centre in Bengaluru comprising 35,000 sq ft of office space,” Marwah said.

TEC’s India revenue stood at around USD 35 million during the last financial year.

The Executive Centre is Asia Pacific’s leading premium serviced office provider. It has over 135+ centres in 32 cities and 14 countries with an annual turnover in excess of USD 275 million.

Co-working or flexible workpsace space segment has grown rapidly in India in the last 3-4 years. Industry experts believe that the trend is likely to continue despite the short-term disruption caused by the spread of coronavirus disease.

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