Covid-19 impact: Redbrick Offices in wait and watch mode

NEW DELHI: Redbrick Offices, a co-working space provider, is on wait and watch mode during the coronavirus related lockdown. Except for couple of centers having banking, financial services and healthcare clients, it has shut down all its spaces, informsAshish Goenka, director, of the company.


"We've actually shut down pretty much all our centers, but there's a couple of centers still operational because of the kind of work that's going on, which is on the critical. They've got the right approvals and they're carrying on," said Goenka.


Redbrick Offices has over 10,000 seats across 16 centres inMumbai,Pune&Hyderabadhosting more than 250 business. The company maintains as average rent of Rs 16,000 per seat per month. It had four centres in the pipeline in Mumbai and Pune but as of now they are in wait and watch mode, says Goenka.


"We are quite comfortable to absorb one month lockdown. We are not looking at layoffs. But we will also be looking at passing some of that risk on to our landlords where we have to pay a rent. However we have not started any discussion," said Goenka.


The company operates on a 50-50 models, in which about 50 per cent of the assets are owned by them and rest 50% is on a pure lease and sub-lease model.



"We are not a builder, but we acquire the assets and operate accordingly. We don't have any revenue share agreements as of now," said Goenka.


The company claims to be more focused on the enterprise customer. "About 75-80 per cent of our clients are large corporate. And so that gives us certain degree of resilience. They have the ability to suffer one month of no office space and still carry on. They're going to wait and watch for at least a month, maybe two months before they take a call," adds Goenka.


NEW DELHI: Redbrick Offices, a co-working space provider, is on wait and watch mode during the coronavirus related lockdown. Except for couple of centers having banking, financial services and healthcare clients, it has shut down all its spaces, informs


Source: https://realty.economictimes.indiatimes.com/news/commercial/covid-19-impact-redbricks-offices-in-wait-and-watch-mode/74826988

March 26, 2020

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