Latest News | Studiokon Ventures Enters Serviced Office Biz; to Invest USD 5 Mn to Set Up Coworking Centres

New Delhi, Sep 7 (PTI) Studiokon Ventures (SKV), which is engaged in office design and interiors, on Monday said it has forayed into the serviced office segment and will invest USD 5 million (around Rs 36 crore) to set up coworking centres across major cities.

SKV, which is a leading player in smart office solutions with an annual turnover of Rs 200 crore, has taken on lease 50,000 sq ft of office space in Gurugram, Haryana to kickstart its new venture 'Happy Monday'.

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"SKV has committed an initial investment of around USD 5 million for the next 5 years for expansion of Happy Monday," the company said in a statement.

SKV is targeting to reach 1.5 million (15 lakh) sq ft of serviced office space in top seven metro cities over the next 5 years, it added.

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"In the times of the coronavirus pandemic, many companies are looking out for new, cost effective locations or scaling down operations and team-size. They need flexible, lower capex and hassle free options, to keep costs in check, manage COVID's balance-sheet impact and boost productivity," SKV MD Tushar Mittal said.

The company's new venture will offer corporate clients a flexible, cost effective, fully serviced office set-up, including leasing of space, interiors, furniture and annuity-based office maintenance, said Mittal, who is also Country Head and India Partner for Workplace Trends India.

Gurugram-based SKV is currently working with companies like Global Logic, Honeywell and KPMG. Some of its previous clients are Samsung, PepsiCo, Renew Power, Macquarie and DCM Shriram.

The company has a factory spread over 80,000 sq ft in Manesar, Haryana to do off-site production.

According to property consultants, the net office leasing stood at record 45-50 million sq ft and gross absorption at 55-60 million sq ft during 2019 across seven major cities. The office demand is expected to decline 30-50 per cent this year due to COVID-19 pandemic.

However, they are of the view that demand for flexible workspace will rise post pandemic with corporates looking to cut capital expenditure on setting up their own offices.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)