Oyo made its debut in the co-working market with the acquisition of Innov8, a co-working company with presence across four cities in India
SoftBank-backed Oyo Hotels & Homes has taken up 40,000 sq ft in VKG Corporate Centre at Andheri East in Mumbai, which it plans to develop into a co-working space for mid-scale startups and corporates.
The move comes days after Oyo introduced its co-working brand, Power Station, which seeks to offer customised services, private offices, and virtual working space. The Mumbai facility will start operations by the second quarter of this year.
An emailed query to Oyo remained unanswered till press time.
But Anuj Khetan, director at Vijay Khetan Group (VKG), confirmed the development. "It is a leave and licence agreement and it was registered on March 16," he said. "We expect 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 the near future."
NYSE-listed real estate services firm CBRE was the intermediary for the deal. People aware of the development said the agreement is for nine years, with a lock-in period of five years. Emailed queries sent to CBRE did not elicit any response.
Oyo made its debut in the co-working market with the acquisition of Innov8, a co-working company with presence across four cities in India. The acquisition deal size is expected to be around Rs 200 crore.
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