EFC (India) Expands its Commercial Real Estate Footprint with Strategic Acquisitions and Initiatives
EFC (India) has made significant moves in the commercial real estate sector with its recent acquisition of a large office space in Pune and other strategic initiatives.
Commercial Real EstateEfc IndiaPuneOffice Space AcquisitionCoworking SpacesReal Estate PuneSep 01, 2024
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.
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.
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.
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. 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.
Frequently Asked Questions
What is the size of the office space acquired by EFC (India) in Pune?
49,556 square feet
What is the annual revenue expected from EFC's managed office business model?
INR 14.40 crore
What is the value of the design and build contracts secured by EFC (India) with Tata Consultancy Services (TCS)?
Exceeding INR 75 crore
What is the corpus of the real estate investment trust (REIT) being set up by EFC (India)?
INR 499 crore
What is the projected topline of EFC's manufacturing facility in Phursungi, Pune?
INR 50-70 crore in FY25
Related News Articles
Keystone Realtors Raises Rs 800 Crore from Institutional Investors
Mumbai-based Keystone Realtors has raised Rs 800 crore by selling shares to institutional investors
Kerala Police Hand Over Mami Missing Case to Crime Branch to Avoid CBI Probe
The Kerala police have handed over the missing case of Mohammad Attur, a prominent real estate businessman, to the Crime Branch to prevent a CBI investigation.
Home Sales in Noida and Greater Noida Increase by 6% in Q3 2024
The residential property market in Noida and Greater Noida witnessed a 6% surge in registrations during the July-September quarter, with a total of 8,128 units sold, according to real estate consultant Square Yards.
Mumbai Real Estate Market Sees Significant Growth in 2024 with 1.41 Lakh Registrations
Mumbai's real estate market is on track to register 1,41,302 property registrations in 2024, marking an 11% increase from the previous year. The market is showing resilience and a growing preference for premium and spacious homes.
2025 Outlook: The Future of Commercial Real Estate in Tier-II and Tier-III Cities
In 2025, we can expect a significant rise in commercial real estate activity in Tier-II and Tier-III cities across India, driven by factors such as low operating costs, ample space, skilled talent, and infrastructure development.
Maharashtra's Transport Minister Pratap Sarnaik Invites CREDAI to Develop MSRTC Land
The Maharashtra Transport Minister, Pratap Sarnaik, has called on the Confederation of Real Estate Developers’ Associations of India (CREDAI) to participate in the development of 1,360 hectares of land owned by the Maharashtra State Road Transport Corpora