Table Space to Pump $100M into Office Expansion

20 Aug 2024 , 01:36 PM

Managed workspace provider Table Space is to invest $100 million (approximately 840 crore) in office buildings, beginning with its recent Rs 450 crore transaction with Panchshil Realty for 900,000 sq ft of space in Pune.

The Bengaluru-based company, which secured $325 million from Hill House Capital in 2022, is also in talks with Panchshil Realty to acquire an additional 1.2 million square feet in Pune as part of its ambition to expand its office assets in important urban areas.

It presently administers over 10.5 million square feet of operational assets throughout India.

Table Space and the Panchshil Group have formed an equally owned joint venture with an equity stake of Rs 800 crore for the Pune commercial project.

“We are looking for further purchases, and this is only the first one. Amit Banerji, founder and CEO of Table Space, said the current transaction will include both equity and debt components.

The structure, located in Kharadi, Pune, is slated to be completed by the third quarter of next year. Table Space wants to expand its owned asset portfolio, Table Space Towers, by 5 million square feet across India.

“We anticipate an initial lease-to-ownership ratio of 80:20 for our space. However, as we stabilise, we expect to shift to a 60:40 ratio, with 60% leased and 40% owned.

“Our financial resources are considered adequate to support this planned strategy,” he stated.

Table Space raised over $325 million from Hill House Capital in the fourth quarter of 2022, and the company has since strengthened and expanded its operations and leadership team.

“We cover all major metropolitan regions and use a comparative asset evaluation process to determine the best investments. We do not have a preferred city and instead focus on locating the right asset inside the proper micro market. For example, we are now doing a rigorous appraisal of an asset in Bengaluru’s burgeoning Whitefield market,” Banerji stated.

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