EFC (India) has acquired 49,556 square feet of office space in Pune for over INR 80 crore, expanding its capacity by over 1,500 employees. This purchase is part of EFC's broader strategy, which includes acquiring a total of 80,000 square feet in Pune, yielding an expected annual revenue of INR 14.40 crore. The company also secured a 51% stake in Bigbox Venture, adding 3,000 coworking seats. Additionally, EFC is setting up a REIT with a corpus of INR 499 crore and has filed with SEBI for approval. These moves position EFC as a major player in commercial real estate.
EFC (India) has made significant moves in the commercial real estate sector with its recent acquisition of a large office space in Pune. The company, which operates as a wholly-owned unlisted subsidiary, has purchased 49,556 square feet of office space for over INR 80 crore. This new office can accommodate more than 1,500 employees, showcasing EFC's commitment to expanding its presence in this key market.
In addition to this recent purchase, EFC has been actively acquiring properties in Pune. As highlighted by Nikhil Bhuta, the company's whole time director, EFC has acquired a total of approximately 80,000 square feet in the region. These properties, secured as freehold assets, will support EFC's managed office business model, anticipated to yield an annual revenue of INR 14.40 crore. This approach reflects a growing trend among companies that are looking to capitalise on the increasing demand for flexible workspace solutions.
Beyond real estate acquisitions, EFC has also strengthened its portfolio by acquiring a 51% stake in Bigbox Venture. This co-working space provider adds over 3,000 seats to EFC's capacity. Bigbox has seen monthly revenues of about INR 2 crore, and the acquisition is expected to enhance this as the company expands further into major cities like the National Capital Region, Ahmedabad, and Kolkata. Umesh Sahay, founder and managing director, noted that since the acquisition, Bigbox has added around 2,000 more seats, indicating a rapid growth trajectory.
The company's ambitions do not stop at co-working spaces. EFC (India) has secured design and build contracts with Tata Consultancy Services (TCS), exceeding INR 75 crore in value. The company is in negotiations for additional contracts worth over INR 100 crore. This diversification allows EFC to tap into multiple revenue streams, essential for sustaining growth in the competitive real estate market.
Moreover, EFC is making strides in setting up a real estate investment trust (REIT), which aims to manage a substantial corpus of INR 499 crore. The company has already filed its REIT application with the Securities and Exchange Board of India (SEBI) and expects to receive the necessary approvals by early September. This move toward establishing a REIT aligns with market trends, as more firms look to create trust structures to attract investments, particularly in uncertain economic times.
As of June 30, 2024, EFC manages around 2.25 million square feet across 57 sites in seven cities, with a seating capacity of about 47,000. The company's rental segment alone has generated approximately INR 66.79 crore, accounting for about 63.44% of its total revenue. The design and build segment contributed INR 35.03 crore, showcasing a balanced revenue structure.
Looking ahead, EFC aims to add between 30,000 to 40,000 seats annually. In addition, under its Ek Design Industries branch, the company plans to launch a manufacturing facility on three acres in Phursungi, Pune, with production trials already underway. By September 2024, commercial production is expected to begin, projecting a topline of INR 50-70 crore in FY25.
EFC (India) is positioning itself as a key player in the real estate market by continuously expanding its portfolio and diversifying its operations. Its strategic acquisitions and planned initiatives are expected to strengthen its market presence and contribute to its growth in the coming years. As flexible workspaces become increasingly popular, EFC's proactive approach may enable it to capitalise on emerging opportunities in the evolving landscape of commercial real estate.
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