HCL Technologies to sell Bengaluru office assets
Technology

HCL Technologies to sell Bengaluru office assets

HCL Technologies intends to offload its office assets in Bengaluru as part of its strategy to monetise non-core real estate assets and streamline operations, according to sources familiar with the matter.

The software services company is seeking to divest its special economic zone campus located in the Jigani industrial area, spanning 27 acres with a total area of 1.6 million square feet.

Insiders suggest that a potential sale could generate around Rs 5.5 billion for HCL Tech.

Over the past year, HCL has been monetising various assets following its exit from the hardware business, which is considered non-core for them. The move aims to consolidate operations across different cities, as stated by one of the individuals with knowledge of the situation.

In addition to the Bengaluru assets, HCL Tech acquired more than 6.5 acres of land in Chennai last year, boasting a built-up area of 5.5 lakh sq ft. Another source familiar with the company's real estate portfolio realignment process mentioned that the deal was concluded last year, and HCL is actively exploring more asset monetisation opportunities.

A spokesperson for HCL Tech had previously mentioned the company's plan to bring back 70?75% of the workforce to the office by the end of the current year. However, in response to recent queries, a spokesperson stated, "As a policy, we do not comment on market speculation."

As of September 2023, HCL Tech's total headcount stands at 221,139. During the September quarter, the company reduced its workforce by 2,299 employees while adding 3,630 freshers, resulting in an attrition rate of 14.2%.

The ongoing transition to hybrid work post-pandemic is reshaping India's real estate landscape, emphasising the importance of collaboration over physical occupancy. Consequently, IT companies are adjusting their property portfolios accordingly. Recent data indicates a surge in office space absorption in major property markets, reaching an 18-month peak in the September quarter, with leasing hitting a six-quarter high of 10.37 million sq ft across the top seven office property markets?a 30% increase from the previous quarter.

HCL Technologies intends to offload its office assets in Bengaluru as part of its strategy to monetise non-core real estate assets and streamline operations, according to sources familiar with the matter. The software services company is seeking to divest its special economic zone campus located in the Jigani industrial area, spanning 27 acres with a total area of 1.6 million square feet. Insiders suggest that a potential sale could generate around Rs 5.5 billion for HCL Tech. Over the past year, HCL has been monetising various assets following its exit from the hardware business, which is considered non-core for them. The move aims to consolidate operations across different cities, as stated by one of the individuals with knowledge of the situation. In addition to the Bengaluru assets, HCL Tech acquired more than 6.5 acres of land in Chennai last year, boasting a built-up area of 5.5 lakh sq ft. Another source familiar with the company's real estate portfolio realignment process mentioned that the deal was concluded last year, and HCL is actively exploring more asset monetisation opportunities. A spokesperson for HCL Tech had previously mentioned the company's plan to bring back 70?75% of the workforce to the office by the end of the current year. However, in response to recent queries, a spokesperson stated, As a policy, we do not comment on market speculation. As of September 2023, HCL Tech's total headcount stands at 221,139. During the September quarter, the company reduced its workforce by 2,299 employees while adding 3,630 freshers, resulting in an attrition rate of 14.2%. The ongoing transition to hybrid work post-pandemic is reshaping India's real estate landscape, emphasising the importance of collaboration over physical occupancy. Consequently, IT companies are adjusting their property portfolios accordingly. Recent data indicates a surge in office space absorption in major property markets, reaching an 18-month peak in the September quarter, with leasing hitting a six-quarter high of 10.37 million sq ft across the top seven office property markets?a 30% increase from the previous quarter.

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