Real estate firm Embassy Group on April 27 announced a partnership with SAS Infra to develop three Grade-A office assets encompassing 14 million sq. ft., located in Hyderabad’s financial district. Colliers is the transaction adviser for this deal.
Embassy’s decision to re-enter Hyderabad marks growing confidence in its real estate landscape, buoyed by record hiring, major expansion plans by global IT, ITeS and BFSI firms (information technology, IT-enabled services, and banking, financial services and insurance), and heightened physical occupancy levels, the company said in a statement.
The first of the projects, the 36-floor Embassy SAS I Tower, comprising 5.2 million sq. ft. is currently under construction, while the second project, the 3 million sq. ft. Embassy Diamond Tower, has begun its excavation. The third project, Crown, will have a potential of 3 million sq. ft. of commercial space, with Embassy and SAS Infra partnering to develop it.
Embassy Group will act as the development manager for the first two projects, overseeing the construction, vendors, and leasing. Situated in Nanakramguda and Khajaguda, these office spaces will add to the burgeoning world-class office stock in the region.
The construction of the three projects is likely to be completed in different phases, starting from the last quarter of 2023.
“Hyderabad has emerged as one of India’s most dynamic and resilient commercial markets with its strong growth and hiring outlook. Factors such as the recent return-to-office mandates and global occupiers' anticipating their next phase of expansion indicate that demand for office spaces is primed to multiply. These trends, compounded by Hyderabad’s rapidly growing infrastructure and supply of Grade-A workspaces, have underscored its emergence as a leader in net office space absorption,” said Aditya Virwani, Chief Operating Officer, Embassy Group.
“We are pleased to join hands with Embassy Group, one of India’s largest real estate developers, to develop three world-class commercial spaces in the heart of the city. This opportunity will enable us to further break new ground with our cutting-edge and world-class projects, including I Tower, Diamond Tower and Crown. SAS Infra is known for our role in creating a revolution in Hyderabad's real estate market through our innovative designs and robust local networks that made the city a global business hub,” said Rajkumar Kurra, Managing Director, SAS INFRA Group, added,
The forthcoming commercial properties will cater to a marquee client base, with an environmental framework intrinsic to the inventive and futuristic design approach. With Hyderabad becoming a development expansion hub in the South, physical workplaces will become even more essential for global employers in creating a culture of innovation, quality, and collaboration.
The project will currently fall under NAM Estates Pvt Ltd, and is expected to become a part of the upcoming flagship vehicle Embassy Developments Ltd, following the composite scheme of merger between Embassy and Indiabulls Real Estate Ltd, subject to regulatory approvals.