India’s largest realty firm DLF has given on lease about 2.25 lakh sq ft of office space in Gurgaon to US-based co-working major WeWork, sources said.
Earlier, DLF had also provided around 60,000 sq ft office space on lease to co-working operator Skootr.
The demand for co-working space is rising in India due to affordable rents and flexible working options.
According to sources, DLF has leased this space to WeWork in Cyber City, Gurgaon for about Rs 130 per sq ft monthly rental.
DLF spokesperson declined to comment on the leasing transaction, while WeWork spokesperson could not be reached.
DLF has over 30 million sq ft of commercial space, most of it in Gurgaon.
Recently, DLF promoters concluded a sale of 40 percent stake in rental arm DLF Cyber City Developers Ltd (DCCDL) for about Rs 12,000 crore. This deal included sale of 33.34 percent stake to Singapore’s sovereign wealth fund GIC for about Rs 9,000 crore.
DLF has 66.66 percent stake in DCCDL now.
The realty major is developing an office project in Gurgaon and has recently bought 12-acre land in the city for Rs 1,500 crore.
WeWork, the platform for creators that provides space, community and services to help people make a living, has recently entered the Delhi-NCR market with the launch of its collaborative space in Gurgaon. This was the 6th location by WeWork in India.
It has co-working space at three locations in Bengaluru and two in Mumbai.
With the launch of ‘WeWork Bristol Chowk’ at Gurgaon, the company will provide space for 7,000+ members across India.
On the launch of Gurgaon centre, WeWork India General Manager Karan Virwani said: “Whether you need a desk, office suite, or entire HQ, we create an environment that increases productivity, innovation, and collaboration for teams of any size.”
As per a recent study by JLL, the co-working segment in India is expected to receive USD 400 million investments by 2018, he added.
Sources : Economic Time