EFC, a wholly-owned unlisted subsidiary of EFC (I), has acquired 49,556 sq ft office space in Pune worth over Rs 80 crore.
The center has a seating capacity over 1,500. It recently acquired another property in the city. In its earning conference call, Nikhil Bhuta, whole time director of EFC (I) had said, “we have acquired approximately 80,000 sq ft of property in Pune. This is an freehold property that we have acquired under ownership, which will be developing and leasing under our managed office business model. This acquisition has the potential to generate an annual revenue of about Rs 14.40 crore.
“The company recently acquired 51% stake in Bigbox Venture which has a portfolio of over 3,000 seats in Pune and is aggressively expanding into the National Capital Region (NCR), Ahmedabad and Kolkata. “When we acquired Bigbox, the Bigbox was already doing around Rs 2 crore a month of top line. So, that was the kind of top line they were already adding on a monthly basis. That’s with about 2,800 – 2,900 seats. Since our acquisition, they have already kind of added about 2,000 more seats,” said Umesh Sahay, founder and managing director of the company during the earnings call.
EFC (I) was also awarded design and build contract with Tata Consultancy Services (TCS). “In design and build division, we have secured contract exceeding Rs 75 crore during this quarter (Q1 FY25) across various business sectors, and are currently negotiating additional contracts by over Rs 100 crore,” Bhuta had informed during the earnings call.
It has also incorporated a real estate investment trust (REIT) to established small and medium REIT the substantial corpus of Rs 499 crore. “The REIT application has been already filed with the SEBI, a round of discussion has already happened with the regulator. And we are expecting that probably, by end of this month or beginning of September, we should get an approval for the registration of our REIT,” said Sahay.
The company is currently managing about 2.25 million sq ft of assets, with 57 sites under management across seven cities. It has sitting capacity of about 47,000 seats and all as on June 30, 2024. The rental segment generated approximately Rs 66.79 crore, accounting for about 63.44% of company’s total revenue, the design and build turnkey contracting business contributed Rs 35.03 crore, representing approximately 36.56% of the total revenue.It increased the area under leasehold rights by about three lakh sq ft, adding over 7,000 seats across seven centers and four existing cities during Q1 FY25.
Under Ek Design Industries, the company secured regulatory approvals to establish a manufacturing facility on over three acres in Phursungi, Haveli Taluka, Pune. Production trials are slated to begin during August 2024 with commercial production set to be launched by September 2024. The company expects to achieve Rs 50-70 crore topline in FY25 once the production starts.
Going forward, the company wants to keep adding about 30,000 to 40,000 seats year-on-year basis. With regards to the furniture manufacturing business, the company expects to cross around Rs 250 to 300 crore top line by end of FY26.
