EFC India Expands Commercial Real Estate Footprint with Major Acquisitions and Diversification
EFC India has acquired a large office space in Pune for INR 80 crore and strengthened its portfolio by acquiring a 51% stake in co-working space provider Bigbox Venture.
Efc IndiaCommercial Real EstateOffice SpacePuneBigbox VentureCoworking SpaceTata Consultancy ServicesReitSecurities And Exchange Board Of IndiaReal EstateSep 01, 2024
In addition to this recent purchase, EFC has been actively acquiring properties in Pune. The company's whole time director, Nikhil Bhuta, highlighted that 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.
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.
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.
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.
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.
Information on Tata Consultancy Services (TCS) Tata Consultancy Services (TCS) is an Indian multinational information technology (IT) consulting and business solutions company headquartered in Mumbai, India. It is a subsidiary of the Tata Group and operates in 149 locations across 46 countries.
Information on Securities and Exchange Board of India (SEBI) The Securities and Exchange Board of India (SEBI) is the regulator of the securities and commodity market in India under the ownership of the Ministry of Finance, Government of India. It was established on April 12, 1992, and headquartered in Mumbai, India.
Frequently Asked Questions
What is the total office space acquired by EFC India in Pune?
49,556 square feet
What is the expected annual revenue from EFC's managed office business model?
INR 14.40 crore
How many seats does Bigbox Venture add to EFC's capacity?
Over 3,000 seats
What is the value of the design and build contracts secured by EFC India with Tata Consultancy Services?
Exceeding INR 75 crore
What is the expected topline of EFC's manufacturing facility in Phursungi, Pune, in FY25?
INR 50-70 crore
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