Mobile chip maker Qualcomm is close to acquiring about 0.5 million square feet of office space in Bengaluru to expand its operations in the city, according to people familiar with the matter. The company is looking for space in Outer Ring Road, which is home to numerous multi-national companies including Google, Cisco and Visa, sources added.
Qualcomm, whose chips are used in Apple and Samsung Electronics smartphones, has already shortlisted two buildings from property developer Prestige and Bagmane Group but it yet to sign a Letter of Interest with either of them. Market sources believe that Qualcomm is most likely to choose the Bagmane Constellation Park located on the Outer Ring Road. This facility’s clients include global tax and auditing company EY, e-commerce giant Amazon and South Korea’s Samsung.
Prestige declined to comment while Qualcomm and Bagmane were not immediately available for comment. US-based Qualcomm which is looking to start its operations in the new premises during the first quarter of 2017, may pay a rent of Rs 65 per sqft, which would translate into an annual rent of Rs 39 crore per year.
It was, however, not immediately clear what sort of work will be done in the new office or the number of employees that Qualcomm would hire. It already has its CDMA Technologies and research development team in Bengaluru.
Search engine giant Google, controlled by Alphabet Inc, leased about 100,000 sqft space in the same building in April.
In December, Qualcomm leased about 0.4 million sqft space in Hyderabad to consolidate its operations in the city, which could seat 1,000 employees. Hyderabad houses the company’s Global Information Technology Center as well as engineering team across various functions.
Source: ET Realty