Hong Kong's TEC leases one lakh sq ft office space in Mumbai, Bengaluru
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.