Coworking major WeWork India has taken 660,000 square feet office space on lease in realty firm Bhutani group’s commercial project in Noida as a feature of its extension intend to fulfill rising demand of flexible workspace. The office tower is part for 3 million square feet Bhutani Alphathum project. Bhutani group possesses around 40% of this 660,000 square feet space while the leftover areas have been sold to individual investors, he added.
“We have the leasing right for this entire tower on behalf of our investors,” Bhutani said.
“We have given an entire office tower comprising 660,000 square feet, on 15 years lease to WeWork India,” Bhutani group CEO Ashish Bhutani told PTI.
According to him, the two partners will share revenue in the first two years of operations.
It is one of the largest commercial real estate transactions facilitated by real estate advisory firm Colliers India. Set to open in Q4 2022, WeWork Alphathum will house over 8,500 desks.
“From the third year onwards monthly rentals will be Rs 55 per square feet,” Bhutani said.
“We welcome WeWork at Bhutani Alphathum and are committed in providing them with the highest quality of services,” Bhutani said.
The company has expand its network in Noida through Bhutani Alphathum, Arnav S. Gusain, Head of Real Estate, Product and Procurement at WeWork India said.
Bhupindra Singh, Managing Director, North India at Colliers, said, “WeWork caters to a diverse mix of clients providing them with flexible workspace solutions. Now expanding their footprint in Bhutani group’s Alphathum, WeWork will establish a strong presence along Noida Greater Noida Expressway. Recently, WeWork India Chief Executive Officer (CEO) Karan Virwani highlighted that the company has become profitable for the first time during January-March 2022 period, with a profit of Rs 25 crore at EBITDA (earnings before interest, taxes, depreciation, and amortization) level.
“Our revenue was Rs 250 crore during the first quarter of this calendar year. We expect Rs 1,000 crore revenue in 2022 calendar year,” he said. At present, WeWork India has a portfolio of 5 million square feet.
It currently has a presence in six major cities, including Delhi-NCR, Mumbai and Bengaluru.