The Executive Centre to double flex Grade A office portfolio in India, invests Rs 100 cr

Currently, the company has workspaces across 33 cities and 15 countries. Last year, the company invested about Rs 50 crore to launch 4-5 centres across India.

The Executive Centre (TEC), the Hong-Kong-based flex workplace provider, has invested Rs 100 crore to add 2 lakh square feet of Grade A flex office space in India while doubling its last year's portfolio.

Flexispace or flexible workspace is the term for an office space that comes with several creative desk layouts. Different types of workspaces tend to include non-fixed desks or workspaces that any employee can utilise.

TEC has tied up with eight centres with about 2,200 workstations in key cities across India, with Bengaluru having more than 25 percent of the total share, Nidhi Marwah, Group Managing Director, told Moneycontrol.

The new centres are located at Helios Business Park in Bengaluru, DLF Centre in Connaught Place, New Delhi; One Horizon Centre and DLF Downtown in Gurugram; FIFC in Mumbai; Salarpuria Knowledge City and RMZ Nexity in Hyderabad; and Prestige Palladium Bayan in Chennai.

The Indian flex office space market contributed $15 million to global EBITDA, this year, up by 30 percent from last year, Marwah said.

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"With strong client support and market sentiment for flex workspaces in India, we are confident about doubling our investment in India. We are also looking at opportunities in Tier II and Tier III cities in the second half of the financial year," she added.

For Bengaluru, the company is looking at several micro markets in the eastern and northern IT corridor. "While the tech and IT sector has been bullish in the Grade A office space, today, companies in new sectors like manufacturing, pharma and education are emerging as occupiers in Bengaluru," Marwah said.

Grade A flex spaces evolving

Currently, TEC is averaging between 93 and 95 percent of occupancy across Grade A flex workspaces in key Indian cities, up from 80 percent during the pandemic. The average portfolio in India is growing at a rate of 31 percent annually.

According to Marwah, flex office spaces are continuously evolving post-pandemic, especially with the hybrid work culture and companies calling their employees back to offices.

"Globally, the Middle East and South Asian countries are emerging as the hub for flex office spaces, more than the West. The industry in India is accelerating and exceeding all projections, especially with demand from sectors such as IT/ITES, banking, and healthcare," she added.

While the absorption of Grade A office spaces is high across India, availability of assets is a challenge, TEC said. While coworking will evolve steadily, Grade A flex workspaces will continue to be the front-runner, Marwah said.

Currently, the company has workspaces across 33 cities and 15 countries. Last year, the company invested about Rs 50 crore to launch 4-5 centres across India.