India has become the largest contributor to the EBITDA of Hong Kong-based flexible workspace provider The Executive Centre (TEC) with one fourth of the share coming from India, a senior executive said.
The company is investing Rs 125 crore to add 275,000 sq ft in India this year and plans to add close to 400,000 sq ft in 2025 with an investment of Rs 200 crore as Indian market continues to outperform.
“India continues to be one of the biggest and fastest-growing markets for The Executive Centre. The demand for flexible workspaces in the country has been on the rise with the changing preferences and requirements of the modern workforce,” said Paul Salnikow, founder and CEO, The Executive Centre.
TEC had reported revenue of USD 315 million (Rs 2,603 crore) representing a 11.2% YoY growth. TEC India delivered 31% YoY growth in revenue and contributed 26% to the global adjusted EBITDA.
Total adjusted Ebitda for 2023 was $19 million with India contributing 26%.
“In 2025, we are looking at a lot more aggressive expansion and it all depends on the premium grade A building availability this year. The market is increasing year on year with the 17% CAGR, our intent is to grow at that pace,“ said Manish Khedia, Managing Director, South India, West India & Sri Lanka at TEC.
The company has planned to open new centres across Chennai, Bengaluru, Hyderabad, Mumbai, Gurgaon and New Delhi.
With presence in 36 cities across Asia-Pacific and the Middle East in 16 countries and with over 50,000 members globally, TEC plans to focus on six main cities in India.
“Right now we operate in the top six cities in India and we continue to expand in this six cities as our speculative expansions unless there is any client demand who wants us to expand in any other cities,“ Khedia said.
TEC has been adding 300,000 sq ft in India every year and said the biggest challenge is unavailability of Grade A space.
“The way we are looking at expansion, biggest growth will be driven from Bangalore, Mumbai and Gurgaon. However, we have an aggressive expansion plans in Hyderabad, Pune because those are the cities where we are seeing a lot more in terms of leasing square feet is increasing over the years and we want to increase the footprints accordingly,” Khedia said.
Company currently operates around 1.3 million square feet in India and likely to reach 2 million sq ft of operational portfolio in the next two years.
“Indian economy is booming and we see a huge bull run for the next five years as well. The next five years horizon, especially for the real estate in India including Flex, is on the rise and we will see the maximum demand because even lot of Global MNCs preferring India to invest heavily in Asia market,” Khedia said.
In 2023, the company expanded its footprint exponentially with theaddition of 26 new centres worldwide. This was driven by strong client demand with South Asia and theMiddle East seeing highest growth with a dozen new centre openings, effectively doubling TEC's footprint in the region since the pre-pandemic period.
New centres also opened in Mainland China, North Asia, Southeast Asia, and Australia, spearheaded by high demand.
The company is investing Rs 125 crore to add 275,000 sq ft in India this year and plans to add close to 400,000 sq ft in 2025 with an investment of Rs 200 crore as Indian market continues to outperform.
“India continues to be one of the biggest and fastest-growing markets for The Executive Centre. The demand for flexible workspaces in the country has been on the rise with the changing preferences and requirements of the modern workforce,” said Paul Salnikow, founder and CEO, The Executive Centre.
TEC had reported revenue of USD 315 million (Rs 2,603 crore) representing a 11.2% YoY growth. TEC India delivered 31% YoY growth in revenue and contributed 26% to the global adjusted EBITDA.
Total adjusted Ebitda for 2023 was $19 million with India contributing 26%.
“In 2025, we are looking at a lot more aggressive expansion and it all depends on the premium grade A building availability this year. The market is increasing year on year with the 17% CAGR, our intent is to grow at that pace,“ said Manish Khedia, Managing Director, South India, West India & Sri Lanka at TEC.
The company has planned to open new centres across Chennai, Bengaluru, Hyderabad, Mumbai, Gurgaon and New Delhi.
With presence in 36 cities across Asia-Pacific and the Middle East in 16 countries and with over 50,000 members globally, TEC plans to focus on six main cities in India.
“Right now we operate in the top six cities in India and we continue to expand in this six cities as our speculative expansions unless there is any client demand who wants us to expand in any other cities,“ Khedia said.
TEC has been adding 300,000 sq ft in India every year and said the biggest challenge is unavailability of Grade A space.
“The way we are looking at expansion, biggest growth will be driven from Bangalore, Mumbai and Gurgaon. However, we have an aggressive expansion plans in Hyderabad, Pune because those are the cities where we are seeing a lot more in terms of leasing square feet is increasing over the years and we want to increase the footprints accordingly,” Khedia said.
Company currently operates around 1.3 million square feet in India and likely to reach 2 million sq ft of operational portfolio in the next two years.
“Indian economy is booming and we see a huge bull run for the next five years as well. The next five years horizon, especially for the real estate in India including Flex, is on the rise and we will see the maximum demand because even lot of Global MNCs preferring India to invest heavily in Asia market,” Khedia said.
In 2023, the company expanded its footprint exponentially with theaddition of 26 new centres worldwide. This was driven by strong client demand with South Asia and theMiddle East seeing highest growth with a dozen new centre openings, effectively doubling TEC's footprint in the region since the pre-pandemic period.
New centres also opened in Mainland China, North Asia, Southeast Asia, and Australia, spearheaded by high demand.
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