What are the current focus areas of the company in commercial real estate segment?
The focus presently is on our International Business Park that comprises Commerz, Commerz II and Commerz III in Oberoi Garden City, Goregaon, Mumbai. The Commerz III is under construction and we are expecting to complete it by March next year.
We have seen a great traction for these properties, being an integrated business park with all facilities available including retail and residential nearby, that makes it a convenient workplace for the employees. We are also in talks with the Metro authorities to connect the adjacent metro station to the Business Park through a foot over bridge. This will further enhance the connectivity of our Business Park.
Today, the companies are looking for Grade A buildings that are green rated, ESG compliant and have strict adherence to health and safety for the occupiers. However, as we see, there is a dearth of Grade A commercial real estate in the country. For instance, the suburbs where we are located, there are hardly any ESG compliant commercial buildings available. Thus, our Business Park stands out due to its compliant buildings with integrated facilities and connectivity.
Are there any plans to collaborate with Flex space operators?
Flex is indeed picking up and we are open to it. Presently, many organizations are figuring out their work models, hybrid or non-hybrid as well as the employee strength, thus taking up a flex space is advantageous for them in terms of cost, operations as well as maintenance. However, flex operators need to consider their financial models carefully, so that they are able to sustain.
As a commercial real estate developer, we need to be conscious and take up the right kind of flex space operator for collaboration and have a right kind of partnership. Currently, WeWork has taken up a large space in our Business Park and we look forward to having more reputed flex space operators leasing property here.
Will the expected recession in the western countries impact the Indian commercial real estate?
While, the global recession may have some impact on the jobs and businesses in the country, but the strong domestic economy and the workforce returning to offices after the pandemic will keep the commercial realty segment buoyant. In addition, the limited supply of Grade A office spaces will ensure, such projects will not see any vacancies.
Today occupiers ask for the facilities available from waste management to air quality and want amenities like, gym, food courts etc. Projects that can provide all the conveniences and services to the occupiers are much in demand. In our Business Park, we are mindful of all these aspects including high quality facility management that is being done by CBRE.
What are the future growth plans of the company in this segment?
While, our current focus is on the International Business Park at Oberoi Garden City, Goregaon, we will also be looking at other locations in Mumbai for Commercial real estate projects. Borivali, where we already have a residential and a mall is in the pipeline, can be the next destination. In near future we might also consider foraying in Delhi, but that will need a lot of thoughtful planning, before we set our footprint in a new geography. REIT could be the next step for commercial real estate business, but that is not in immediate growth plans.