DLF in talks with global entities in co-work segment

Aims to lease 100,000-sq ft commercial space in Delhi and Chennai to start-ups

DLF, the real estate giant, plans a major entry into the co-work space business. It aims to lease 100,000 sq ft of prime commercial space, initially in the Delhi region and Chennai, to start-ups in the co-working sector over the next couple of years. And, is in talks with New York-based WeWork and other US and Europe-based co-work service entities. 

“We are looking at the space. In the next five years or so, we believe it would be around five to seven per cent of (our) total rental revenue. We have had talks with foreign players; a lot of private equity players are interested in this space,” sources in DLF said.

Its rental market is worth Rs 2,300 crore. 

The company believes the trend of co-working, catching on in big and tier-II cities, can be a viable business option. 

The company recently got into a tie-up with Skootr, a leading entity in this segment, for a co-working and managed office space in DLF Cyber City, Gurgaon. This will be operational by the third quarter of this financial year. The project will have an area of 50,000 sq ft, at one of the premium office hubs.

“We believe this partnership is going to be most fruitful for companies with relatively small office space requirements, as they’re now going to operate through one of the most premium commercial hubs across the country. We are going to offer a mix of managed private offices and co-working spaces at this place,” said Puneet Chandra, chief executive officer at Skootr.

Skootr aims to add up to eight to 10 locations across major metropolitan regions to its portfolio by the end of 2017. DLF has also got into a partnership for a 30,000 sq ft lease deal with Spaces, a brand of co-working space provider International Workplace Group, also at DLF Cyber City, Gurgaon.  

Mixing resources for productivity

• Realty firm recently got into a tie-up with Skootr, a leading entity in this segment
• The tie-up will be for co-working and managed office space in DLF Cyber City, Gurgaon
• The project will be operational by the third quarter of FY18 and will have 50,000 sq ft 
• Other start-ups in this segment are Awfis Space Solutions and InstaOffice