The Oyo Hotel and Homes-backed by SoftBank acquired 40,000 sq.ft. at the VKG Corporate Centre in Andheri East Mumbai. The company plans to develop this space into a coworking area for the mid-scale startups and corporates.
This announcement was made after Oyo introduced its coworking brand, Power Station that seeks to offer customized services, private offices, and virtual working space. The operations in Mumbai facility will begin by the second quarter of this year.
Anuj Khetan, director at Vijay Khetan Group (VKG), confirmed the development and said that it’s a leave and licence agreement and was registered on March 16. He further said that the company expects that the deal will scale up to around a lakh sq.ft. in VKG Corporate Centre and 4-5 lakh sq.ft. in other properties of Vijay Khetan Group in future.
CBRE, a NYSE-listed real estate services firm played the role of an intermediary in the deal. The sources said that the agreement is for nine years with a lock-in period of five years.
Earlier in January 2019, the Oyo was in the final stages of talks for acquiring Innov8 a co-working space company. According to the sources, this deal is likely to be finalized in Rs. 200 crores and will be a complete cash transaction.
Oyo a budget hotel chain is looking for a co-working deal in the co-working sector and the sources close to the group estimate the deal to be of worth Rs. 200 crores. The company is all set to purchase Innov8 in an allcash deal as the sponsor of this company i.e. Softbank has given Oyo thumbs up.
The Oyo Company is searching for co-living and co-working opportunities and the Softbank is supporting it. This deal is said to be a perfect call for both as the Innov8 is also looking for a buyout opportunity.
Ritesh Aggarwal, the Oyo founder raised approximately $1.16 billion and also received $100 million from major Grab via transaction.