Bullish on demand for premium flexible office space in India, Hong-Kong based The Executive Centre (TEC) has chalked out an expansion plan and will invest Rs 200 crore over the next 18 months to open 8-10 new facilities across major cities.
TEC, which entered India in 2008 with its first property in Mumbai, currently has over 30 centres with total area of nearly 1 million (10 lakh) square feet across major cities.
In an interview with PTI, Nidhi Marwah, Group Managing Director- South Asia, TEC, said the company performed well during the last fiscal year despite the adverse impact of the COVID-19 pandemic on demand for office space.
The turnover of India business grew marginally by 1.5 per cent to Rs 275 crore during the last fiscal year, she said.
"We announced an investment of Rs 100 crore in June last year for expansion. The planned investment has been completed. We remain bullish on the demand for premium managed office space. Therfore, we have decided to double our investment to Rs 200 crore for our future growth,” she said.
The company will invest Rs 200 crore over the next 15-18 months to open around 8-10 new centres across major cities like Mumbai, Delhi-NCR, Bengaluru, Chennai and Hyderabad.
The new centres will further augment TEC’s position as one of Asia’s largest flexible workspace providers.
"The demand for managed office space has risen during the pandemic. Corporates are now demanding more flexibility, which we are providing,” Marwah said.
She mentioned that corporates now want workspaces where they can scale up and scale down their operations with the ease of accommodating new work cultures and schedules.
"This investment will ensure we continue to provide a melting pot of experiences, customized with an unparalleled finesse to our members,” Marwah said.
Stating that the India market has always played a vital role in the success of TEC, she said: "our commitment towards the growth of this market remains unwavered.”
On its operation, Marwah said there was not much impact on the occupancy and rental collections of its centres, as it caters largely to big corporates from India and MNCs (multinational corporations).
"Corporate employees are returning to offices with rapid progress in vaccination. We are witnessing a footfall ranging from 30 per cent to 50 per cent at our centres. The number will grow after the festive season,” she observed.
Recently, property consultant Colliers India reported that the share of flexible workspace operators in total gross office space leasing rose in July-September period to 26 per cent because of high demand from occupiers looking for managed spaces and short-term leases to tide over uncertain times.
Globally, the TEC has over 150 centres in 32 cities and 14 markets.