IWG leases 50k sq ft from Max Group at Noida for co-working brand 'Spaces'

Global flexible workspace operator IWG has taken on lease 50,000 sq ft office space in Max Group's commercial tower at Noida for its premium brand 'Spaces' as part of its strategy to expand business in India.

International Workplace Group (IWG) operates two co-working office brands in India -- 'Regus' and 'Spaces'. It currently has 104 centres under Regus brand and six under Spaces in the country.

Max Group's realty arm Max Estates is developing a 600,000 sq ft commercial project 'Max Tower' at Noida at a cost of Rs 6 billion.

"We have taken on lease about 50,000 sq ft area in Max Tower. Being Grade A and LEED-certified green building, we will introduce our premium brand 'Spaces' in Noida," IWG's India Country Manager Harsh Lambah told PTI.

He said this centre would have a seating capacity of 400-500 and the workplace is expected to start functioning from December or January.

"Noida is a favoured destination for corporates in the NCR area and the right time for our global co-working brand 'Spaces' to enter the area in alliance with Max Estates," Lambah said.

The location of Max Tower at the entry of Noida will allow IWG to offer services to both Noida as well as South Delhi, he added.

With the project in its final stage, Max Group has started leasing process in this building that commands a monthly rent of over Rs 100 per sq ft.

Lambah said IWG acquired brand 'Spaces' three-and-half years ago. At present, there are 100 'Spaces' centres in 60 countries.

In India, the company will have the seventh 'Spaces' centre in Max Tower. At present, there are two 'Spaces' each in Gurugram and Bengaluru and one each in Mumbai and Chennai.

Asked about per seat charges in 'Spaces' brand, Lambah said it is Rs 14,000-22,000 for co-working and Rs 28,000-45,000 for private offices, depending on location.

Max Group, which is into life insurance, health and allied businesses as well as packaging sector, has entered into commercial real estate to build a portfolio of rental assets.

The group's listed entity Max Ventures and Industries Ltd (MaxVIL) has set up a separate subsidiary Max Estates to develop real estate projects. A housing project at Dehradun comprising 22 villas has been completed.

MaxVIL's MD and CEO Sahil Vachani recently said this office tower has been developed to provide workspaces that cater to the evolving needs of the modern workforce.

Max Estates' COO Arjunjit Singh said about 70,000 sq ft area in this tower has been earmarked for food and beverages and other amenities.

Founded in 1989, Switzerland-based IWG has 3,300 workplaces/ centres at 1,000 cities in over 110 countries.