30 June 23
Tech giant looks to monetise assets; deal likely at over Rs 450 cr
Bengaluru: US technology giant Intel has decided to sell its 250,000-square-foot office space on the Old Airport Road in Bengaluru as part of efforts to monetise its real estate assets.
The deal, expected to exceed ₹450 crore, is anticipated to follow a sale-cum-lease model for three years with a one-year lock-in period for the asset, said multiple people familiar with the matter.
‘Several well-known builders actively participated in the bidding process for this highly sought-after property, said two people, adding that the deal is expected to be concluded in the near future.
The move comes on the back of the hybrid work model adopted by the IT and ITeS firms that continue to assess and optimise their space utilisation to reduce cost. Intel is also looking to consolidate certain offices in Bengaluru.
As a hybrid-first company, we are continuing to assess and optimise our space utilisation to create more vibrant workspaces for our employees when they are on-site, while also achieving cost reductions,” the company said in an emailed response to ET’s queries. “As such, we will be consolidating certain offices in Bengaluru. Bengaluru remains an important design and engineering centre for Intel, with approximately 14,000 employees based in the region.”
Many technology firms are consolidating and reevaluating their real estate portfolio amid a global financial slowdown and layoffs by tech companies since last year.
This has led to lower office absorption by technology firms as they look to reduce costs.
Source – The Economic Times