Hong Kong-headquartered flexible workspace provider The Executive Centre (TEC) will invest Rs 200 crore in adding close to 250,000 sq ft of office space in Gurgaon, Mumbai and Bengaluru, its group managing director for South Asia, Nidhi Marwah, told ET.
The investment will be utilised to set up 8 to 10 additional centres in the country across existing markets.
“Post the successful investment of Rs 100 crore in 2020, our outlook for the industry remains bullish, encouraging us to double that investment to Rs 200 crore to facilitate future growth,” said Marwah. “This investment will ensure we continue to provide a melting pot of experiences, customised with an unparalleled finesse to our members.”
The flexible workspace industry has become more relevant for organisations amid the pandemic as companies across sectors reassess their real estate holdings, both long-term and short-term, to make capital expenditure more efficient.
“Demand for flex office space has picked up quite a bit, especially in cities like Bengaluru, Mumbai and Gurgaon, as people are coming back quicker to these locations,” said Marwah.
The company is in different stages of negotiations for properties in these cities.
“It will take 12-16 months, though we would like to get it done in 12 months. We will at least target two centres in one city. The size depends a lot on the client’s demand and it could be 500-seater or a 1,000-seater,” she said.
The company is looking at centres upward of 40,000 sq ft, depending on the city and location.
The Executive Centre operates close to 1 million sq ft of office space spread across Mumbai, Bengaluru, Gurgaon, Pune, Hyderabad and Chennai
“In other cities, people are coming back, but at a slower pace, and that is why we will currently focus on expansion in three cities only. As of now we are not exploring entering into a new city, but we are open to everything,” Marwah said.
The flexible workspace industry has emerged as the first choice for most businesses that want agility in their operations.
According to a
report, 66% of employees expect to be able to work from different locations in the post pandemic environment.
TEC plans to meet the expenditure for expansion from internal funding.
Even during the pandemic, the company has added space in Bengaluru, Mumbai and Pune.
Many organisations are looking for workspaces where they can scale up and scale down with the ease of accommodating new work cultures and schedules.
TEC started operations in Hong Kong in 1994 and now has over 150 centres in 32 cities and 14 markets. It is the third largest serviced office business in Asia.