US technology group Hewlett Packard has taken 450,000 sq ft of office space on lease in Bengaluru, buttressing reports of a healthy growth in the office space leasing segment in the country.
“HP has signed the whole building and is expected to use it for its businesses like research and development and business process outsourcing,” said Nesara B S executive director at Concorde Group, a real estate developer.
The office space in Marathi Concorde Business Park is opposite technology giant Infosys’ campus in Electronic City. The new facility will be used by HP to house around 1,600 employee, people in the know said. The company has about 30,000 employees in India. “The property has been signed at Rs 38 per sq ft and we are expected to receive rental income of around Rs 20 crore annually,” said Nesara.
ET’s email query to HP had not elicited any response till the time of going to press.
Hewlett Packard Enterprise recently merged its corporate services business with Computer Sciences Corp in a deal valued at $8.5 billion.
The merger will create one of the largest global technology services companies in the world with expected annual revenue of $26 billion.
Of late, top Indian cities have seen a significant rise in large office space transactions. Bengaluru recorded the highest number of big property lease and sale deals last year with 76 transactions involving 16 million sq ft of space, said commercial data information and analytics firm Propstack.
Recently, Microsoft said it will invest $1 billion over the next five years in setting up a new campus in the city as part of chief executive Satya Nadella’s plans to tap into the local market and engineering talent.
US-based Google has also taken 100,000 sq ft office space on lease in Bengaluru’s Bagmane World Technology Centre to expand its business in India. It is also setting up a seven-acre campus in Hyderabad, its biggest centre outside the US.
According to real estate services firm Cushman & Wakefield, demand for office space in India grew 19% in the first quarter of 2016 from a year ago to 11.7 million sq ft across the top eight markets.
Source: ET Realty