Coworking major WeWork India has taken 6.6 lakh square feet office space on lease in realty firm Bhutani group's commercial project in Noida as part of its expansion plan to meet rising demand of flexible workspace.
"We have given an entire office tower comprising 6.6 lakh square feet, on 15 years lease to WeWork India," Bhutani group CEO Ashish Bhutani told PTI.
The office tower is part of 3 million square feet Bhutani Alphathum project.
Bhutani group owns about 40 per cent of this 6.6 lakh square feet space while the remaining 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.
According to him, the two partners will share revenue in the first two years of operations.
"From the third year onwards monthly rentals will be Rs 55 per square feet," Bhutani said.
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.
"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.