Executive Centre FY22 revenue up 7 pc at Rs 289 cr; to invest Rs 50 cr on 4 new co-working centres

The Executive Centre's revenue rose 7 per cent to Rs 289 crore last fiscal on the rising demand for flexible office space, and it will invest Rs 50 crore to open four new co-working facilities this year.

Hong Kong-based The Executive Centre (TEC) entered India in 2008 with its first property in Mumbai. It currently has over 30 centres with a total area of about 1 million (10 lakh) square feet across major cities.

''Our India's turnover has grown by nearly 7 per cent during the last fiscal to Rs 289 crore from Rs 271 crore in the 2020-21 financial year as office market revived after the second wave of the COVID pandemic,'' TEC Group Managing Director South Asia and GCC Nidhi Marwah told PTI.

The demand for flexible workspace has further improved since March this year, she said, adding that the company expects to achieve higher growth in the 2022-23 fiscal.

To encash the rising demand, Marwah said the company will expand its portfolio and open four new centres in India, with a total investment of more than Rs 50 crore. While the two new centres in Bengaluru, located in UB City and Safina Towers, will be operational this quarter, the centre in DLF Downtown Gurugram and Olympia Tech Park in Chennai will be functional in the last quarter of 2022. All the four centres, comprising about one lakh square feet area and 1,200 desks, are located across central business districts and cater to thriving niche markets in the metro cities. Post-expansion, the company's total seating capacity in India will cross 10,000.

''India has always been a priority region for us and our investments over the past years mark a testament to this commitment,'' Marwah said.

Apart from these four centres, she said the company is scouting for good Grade-A properties across major cities and plans to tie up with developers for another one lakh square feet area by March next year.

''As we enter a new era where hybrid work model become a priority for organisations, we believe in offering an exemplary experience to our members by curating value-driven customised spaces. This helps our members to reflect their company's identity and culture for their employees,'' Marwah said.

The demand for flexible workspace has increased of late as corporates look to optimise their capex across and mitigate risks. Moreover, the IT/ITeS sector has been hiring aggressively.

In its latest report, Cushman & Wakefield said the leasing of flexible workspace by corporates rose 59 per cent in April-June to 28,167 desks across the top eight cities.

Enterprises leased 17,691 seats in coworking centres in the April-June quarter of last year across eight major cities -- Delhi-NCR, Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Kolkata and Ahmedabad. TEC offers an array of flexible workspace solutions, including private office space, enterprise solutions, coworking, virtual office, and meeting rooms, among others.

Globally, TEC has over 165 centres in 33 cities and 15 markets. It is the third-largest serviced office business in Asia.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)