EFC acquires 49,556 sq ft office space in Pune for Rs 800 million
Real Estate

EFC acquires 49,556 sq ft office space in Pune for Rs 800 million

EFC, a wholly-owned unlisted subsidiary of EFC (I), has acquired a 49,556 sq ft office space in Pune for over Rs 800 million. The new centre, with a seating capacity of over 1,500, marks another significant acquisition in the city by the company. During a recent earnings conference call, Nikhil Bhuta, Whole-Time Director of EFC (I), disclosed that the company has secured approximately 80,000 sq ft of property in Pune. This freehold property will be developed and leased under EFC’s managed office business model, with the potential to generate an annual revenue of around Rs 144 million.

Additionally, EFC recently acquired a 51% stake in Bigbox Venture, which manages a portfolio of over 3,000 seats in Pune and is expanding aggressively into the National Capital Region (NCR), Ahmedabad, and Kolkata. "When we acquired Bigbox, they were already generating a monthly top line of around Rs 20 million with 2,800 to 2,900 seats. Since our acquisition, they have added about 2,000 more seats," said Umesh Sahay, Founder and Managing Director, EFC, during the earnings call.

EFC (I) was also awarded a design and build contract with Tata Consultancy Services (TCS). "In our design and build division, we secured contracts exceeding Rs 750 million during Q1 FY25 across various business sectors, and we are currently negotiating additional contracts worth over Rs 1 billion," Bhuta mentioned.

The company has also established a real estate investment trust (REIT) with a substantial corpus of Rs 4.99 billion. "The REIT application has been filed with SEBI, and we expect approval for registration by the end of this month or early September," Sahay added.

As of June 30, 2024, EFC is managing about 2.25 million sq ft of assets, with 57 sites across seven cities, and a total seating capacity of about 47,000 seats. The rental segment generated approximately Rs 667.9 million, accounting for 63.44% of the company's total revenue, while the design and build turnkey contracting business contributed Rs 350.3 million, representing 36.56% of the total revenue.

In Q1 FY25, the company expanded its leasehold area by about 300,000 sq ft, adding over 7,000 seats across seven centres in four cities. Under Ek Design Industries, EFC secured regulatory approvals to establish a manufacturing facility on over three acres in Phursungi, Haveli Taluka, Pune, with production trials set to begin in August 2024 and commercial production to launch in September 2024. The company anticipates achieving a topline of Rs 500-700 million in FY25 once production starts.

Looking ahead, EFC aims to add 30,000 to 40,000 seats annually and expects its furniture manufacturing business to reach a topline of Rs 2.5 to 3 billion by the end of FY26.
(ET) 

EFC, a wholly-owned unlisted subsidiary of EFC (I), has acquired a 49,556 sq ft office space in Pune for over Rs 800 million. The new centre, with a seating capacity of over 1,500, marks another significant acquisition in the city by the company. During a recent earnings conference call, Nikhil Bhuta, Whole-Time Director of EFC (I), disclosed that the company has secured approximately 80,000 sq ft of property in Pune. This freehold property will be developed and leased under EFC’s managed office business model, with the potential to generate an annual revenue of around Rs 144 million.Additionally, EFC recently acquired a 51% stake in Bigbox Venture, which manages a portfolio of over 3,000 seats in Pune and is expanding aggressively into the National Capital Region (NCR), Ahmedabad, and Kolkata. When we acquired Bigbox, they were already generating a monthly top line of around Rs 20 million with 2,800 to 2,900 seats. Since our acquisition, they have added about 2,000 more seats, said Umesh Sahay, Founder and Managing Director, EFC, during the earnings call.EFC (I) was also awarded a design and build contract with Tata Consultancy Services (TCS). In our design and build division, we secured contracts exceeding Rs 750 million during Q1 FY25 across various business sectors, and we are currently negotiating additional contracts worth over Rs 1 billion, Bhuta mentioned.The company has also established a real estate investment trust (REIT) with a substantial corpus of Rs 4.99 billion. The REIT application has been filed with SEBI, and we expect approval for registration by the end of this month or early September, Sahay added.As of June 30, 2024, EFC is managing about 2.25 million sq ft of assets, with 57 sites across seven cities, and a total seating capacity of about 47,000 seats. The rental segment generated approximately Rs 667.9 million, accounting for 63.44% of the company's total revenue, while the design and build turnkey contracting business contributed Rs 350.3 million, representing 36.56% of the total revenue.In Q1 FY25, the company expanded its leasehold area by about 300,000 sq ft, adding over 7,000 seats across seven centres in four cities. Under Ek Design Industries, EFC secured regulatory approvals to establish a manufacturing facility on over three acres in Phursungi, Haveli Taluka, Pune, with production trials set to begin in August 2024 and commercial production to launch in September 2024. The company anticipates achieving a topline of Rs 500-700 million in FY25 once production starts.Looking ahead, EFC aims to add 30,000 to 40,000 seats annually and expects its furniture manufacturing business to reach a topline of Rs 2.5 to 3 billion by the end of FY26.(ET) 

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