Skootr plans to invest Rs.75 crore in Hyderabad

HYDERABAD: Managed office space provider, Skootr Global has shown interest in investing Rs 75 crore in Hyderabad to double up its office space under management. At present, it has about 3.5 lakh sq.ft and are looking to invest in a similar amount of space this year, said Puneet Chandra, co-founder and director.

Skootr proposes ‘workspace-as-a-service’ wherein the company takes office spaces on lease. Skootr has clients from IT, BFSI, commodity trading, architecture and other sectors.

“Our current portfolio is about 3.5 lakh square feet (sqft) across three projects in Hyderabad. These centers are new but the occupancy has already touched about 75 percent. We are bullish on Hyderabad and are looking to add another 3.5 lakh sqft this year. We have initiated discussions on this front. This will take our total managed space to 7 lakh sqft,” said Chandra.

“Our spending is about Rs 2,000 per sqft. Adding deposits and other costs, the total exposure we have taken in Hyderabad so far will be about Rs 75 to 80 crore. The next phase of investment will be slightly more as costs of some materials have gone up,” he said.

“Post COVID, the industry wants flexibility and more services to be delivered to their employees. Emphasis is on having spaces that foster collaboration,” he said, adding, the majority of office space transactions are taking place in the managed space segment.

In managed spaces, there are common areas like lobbies, cafeteria and toilets. The rest of the area is a bare shell. “We use this bare shell area to customize the office space according to the client requirements. Managed spaces are suited for companies that are particular about design and configuration. The deals are mainly for the long term. Managed spaces suit companies that recruit in large numbers. Rather than the number of seats created the area leased is a better metric for managed space,” Puneet said.

“In co-working, customization possibilities are limited. So, whatever seats that are built, they have to be sold. Coworking has become popular due to startups that mainly look from a short term or temporary perspective. Their workforce is generally below 200,” he said.

“Hyderabad is IT-heavy and very exciting. We are bullish on the city for our growth. We see Hyderabad to be in parallel with Bengaluru very soon. The IT and political infrastructure here is conducive to the growth of the IT sector. There will be growth in Hyderabad due to lower rentals as well. Bengaluru has now become a Rs 120-130 (per sqft) market and Hyderabad is a sub-dollar market,” he said