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Premium managed office solutions provider Table Space is looking to nearly double its footprint with a 9 million square feet addition to its portfolio over the next three years, taking the total space take up to over 18 million square feet, company co-founder and president Kunal Mehra said in an interview with HT.com.
The flexible workspace player is looking to deploy ₹4,500 crore towards the expansion plans as the three-year timeframe promises a rental commitment of ₹8,000 crore into the brand’s kitty, Mehra added.
This capital infusion is inclusive of an allocation towards the company’s latest offering TS Suites, a ready-to-occupy premium office solution. By FY27, the segment could comprise a 25-35% share in the brand’s overall portfolio, per Mehra.
“The revenues post that we’re assuming should be around ₹5,930 crore by March 2027,” said Mehra.
The next three years will see the brand’s presence extend to about 120 centres, largely focussed in Tier 1 cities such as Mumbai, Bengaluru, Delhi-NCR, Chennai, Hyderabad and Pune.
Also Read: Table Space takes on lease 13.5 lakh sq ft of managed office space in Bengaluru, Chennai, Mumbai and Hyderabad
Over the last seven years, Table Space has established its presence in each of the said six cities with a footprint spanning over 9.5 million square feet. The Bengaluru-headquartered firm caters to 400 enterprise clients across more than 60 centres presently.
Besides leasing large spaces in prime locations and transforming them into fully serviced, tech-enabled campuses with modern amenities, Table Space also partners with Indian developers through joint venture agreements to co-own commercial real estate.
Mehra said that within the next three years, the brand aims to take its owned asset portfolio to the 5 million square feet mark. “It’ll be in partnership with our private equity partners,” he added.
Earlier this year, Table Space acquired a 50% ownership stake in a 9 lakh square feet office facility in Pune, as part of a joint venture undertaking with Panchshil Realty, for ₹400 crore.
Going forward, the average size of each centre in the company’s portfolio is expected to increase to anywhere between 5-10 lakh square feet, from 3 lakh square feet currently.
IPO on the anvil?
According to Mehra, the expansion will be funded from internal accruals, bank debt and the unused share of the corpus raised in the 2022 funding round. Table Space has a commitment of $325 million from global private equity firm Hill House Capital.
“We are a cash generating business, so a lot of our expansion happens from the balance sheet. Secondly, we work a lot on bank debt. Debt is always cheaper than equity. So, there is no further (equity) dilution happening,” the senior company executive explained.
Also Read: After Awfis, three major co-working firms mull Initial Public Offering in 2025: Sources
Elaborating on the company’s aspirations of going public, Mehra said: “We are preparing ourselves to get the processes right but there is no specific deadline… From the perspective of growth capital, we’re very well capitalized, both because of our private equity investors and the form of debt we raise from the financial markets. So, the objective for us to do that is not really to get the capital in.”
Earlier this year, peer Awfis Space Solutions made a market debut with a ₹598.93 crore initial public offering.
Foray into global markets
Large enterprise clients, Tier I focus and premium offerings – these are some of the core pillars of Table Space’s playbook.
“When we started this business, we were very clear that we will not have any startups as our clients because we understand the value of a client’s balance sheet, their ability and credibility to pay,” Mehra candidly said. He highlighted that about 80% of the player’s clients are Fortune 500 companies from across sectors and around 43% of the brand’s current expansion is driven by existing clients.
Similar to co-working giant WeWork’s strategy, Table Space is also not keen on making a beeline for Tier II markets.
Also Read: Over 80% office occupiers plan to expand through flex spaces in the next 3-5 years: Colliers
“We don’t intend to go to Tier II, III towns because that is not the customer we understand and that customer will not appreciate our product and offering, and the value that we bring on the table,” Mehra reasoned.
The company is now gearing up to expand its presence in similar global markets like India, such as the Philippines and Malaysia. “Some of our existing occupiers are seeking a solution similar to what they have in India, there as well. The markets are very similar in terms of statutory norms, the expectations of an occupier, so we are comfortable with that,” Mehra remarked.
Business performance
As per the company statement shared with HT.com, in the last financial year (2023-24), Table Space is estimated to have clocked ₹919 crore in revenue and ₹52 crore in net profit.
In the ongoing fiscal year, the company is eyeing an overall revenue target of ₹3,000 crore, Mehra underscored. Talking about profits, he said: “We’ll grow by 20-23%, but we’re focusing on growing our business more than growing our profitability.”
In the first eight months of 2024, Table Space has contracted an annualized leasing revenue of ₹600 crore as against ₹450 crore in the corresponding period of last year, the company statement showed.
In July 2024, Table Space leased over 2.5 million square feet of office space across Chennai, Mumbai, Hyderabad and Bengaluru.
In August, TS Suites was launched in Chennai with 600-plus seats spread across a 33,000 square feet office space on the 9th floor of Global Infocity Park, located in the city’s Perungudi area.
