Table Space to Expand Portfolio by 9 Million Sq Ft in Next 3 Years
Table Space aims to nearly double its footprint with a 9 million square feet addition to its portfolio over the next three years, taking the total space take up to over 18 million square feet.
Table SpaceReal EstateOffice SpaceCoworkingExpansion PlansReal Estate MumbaiSep 17, 2024
The flexible workspace player is looking to deploy ₹4,500 crore towards the expansion plans as the three-year timeframe promises a rental commitment of ₹8,000 crore into the brand's kitty, Mehra added.
This capital infusion is inclusive of an allocation towards the company's latest offering TS Suites, a ready-to-occupy premium office solution. By FY27, the segment could comprise around 15% share in the brand's overall portfolio, per Mehra.
The next three years will see the brand's presence extend to about 120 centres, largely focussed in Tier 1 cities such as Mumbai, Bengaluru, Delhi-NCR, Chennai, Hyderabad and Pune.
Over the last seven years, Table Space has established its presence in each of the said six cities with a footprint spanning over 9.5 million square feet. The Bengaluru-headquartered firm caters to 400 enterprise clients across more than 60 centres presently.
Besides leasing large spaces in prime locations and transforming them into fully serviced, tech-enabled campuses with modern amenities, Table Space also partners with Indian developers through joint venture agreements to co-own commercial real estate.
Mehra said that within the next three years, the brand aims to take its owned asset portfolio to the 5 million square feet mark. “It'll be in partnership with our private equity partners,” he added.
Earlier this year, Table Space acquired a 50% ownership stake in a 9 lakh square feet office facility in Pune, as part of a joint venture undertaking with Panchshil Realty, for ₹400 crore.
Going forward, the average size of each centre in the company's portfolio is expected to increase to anywhere between 5-10 lakh square feet, from 3 lakh square feet currently.
According to Mehra, the expansion will be funded from internal accruals, bank debt and the unused share of the corpus raised in the 2022 funding round. Table Space has a commitment of $325 million from global private equity firm Hill House Capital.
“We are a cash generating business, so a lot of our expansion happens from the balance sheet. Secondly, we work a lot on bank debt. Debt is always cheaper than equity. So, there is no further (equity) dilution happening,” the senior company executive explained.
Elaborating on the company’s aspirations of going public, Mehra said “We are preparing ourselves to get the processes right but there is no specific deadline… From the perspective of growth capital, we're very well capitalized, both because of our private equity investors and the form of debt we raise from the financial markets. So, the objective for us to do that is not really to get the capital in.”
Large enterprise clients, Tier I focus and premium offerings - these are some of the core pillars of Table Space's playbook. “When we started this business, we were very clear that we would only have mid to large enterprises as our clients because we understand the value of a client's balance sheet, their ability and credibility to pay,” Mehra candidly said.
He highlighted that about 80% of the player's clients are Fortune 500 companies from across sectors and around 43% of the brand's current expansion is driven by existing clients.
Similar to co-working giant WeWork's strategy, Table Space is also not keen on making a beeline for Tier II markets. “We don't intend to go to Tier II, III towns because that is not the customer we understand and that customer will not appreciate our product and offering, and the value that we bring on the table,” Mehra reasoned.
The company is now gearing up to expand its presence in similar global markets like India, such as the Philippines and Malaysia. “Some of our existing occupiers are seeking a solution similar to what they have in India, there as well. The markets are very similar in terms of statutory norms, the expectations of an occupier, so we are comfortable with that,” Mehra remarked.
As per the company's unaudited financial statement, in the last fiscal year (2023-24), Table Space is estimated to have clocked ₹919 crore in revenue and ₹52 crore in net profit. In the ongoing fiscal year, the company is eyeing an overall revenue pipeline of ₹3,000 crore, Mehra underscored.
Talking about profits, he said “We'll grow by 20-23%, but we're focusing on hyper-growth while maintaining our profitability.” In the first eight months of 2024, Table Space has contracted an annualized leasing revenue of ₹600 crore as against ₹450 crore in the corresponding period of last year, the company statement showed.
In July 2024, Table Space leased over 2.5 million square feet of office space across Chennai, Mumbai, Hyderabad and Bengaluru. In August, TS Suites was launched in Chennai with 600-plus seats spread across a 33,000 square feet office space on the 9th floor of Global Infocity Park, located in the city's Perungudi area.
Frequently Asked Questions
What is Table Space's expansion plan?
Table Space plans to add 9 million square feet to its portfolio in the next three years, taking the total space take up to over 18 million square feet.
How will Table Space fund its expansion plans?
The expansion will be funded from internal accruals, bank debt and the unused share of the corpus raised in the 2022 funding round.
What is Table Space's revenue projection for the ongoing fiscal year?
The company is eyeing an overall revenue pipeline of ₹3,000 crore in the ongoing fiscal year.
What is Table Space's strategy for expansion?
Table Space is focusing on large enterprise clients, Tier I cities, and premium offerings as its core pillars for expansion.
Is Table Space planning to go public?
Table Space is preparing itself to go public, but there is no specific deadline for the IPO.
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