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US-based semiconductor major microchip technology has acquired 168,000 square feet of office space in one golden milea grade-a commercial Tower located in the business district of Kokapet in Hyderabad For an estimated Rs 175 crore, in one of the biggest purchase deals in the commercial real estate market in the city.
The capital value for a Grade-A commercial space in Kokapet market ranges between Rs 9,000 and Rs 10,500.
The promoters of Microchip and One Golden Mile declined to comment on the valuation.
Microchip anticipates the newly-acquired location will maintain its growth plans for the next 10 years as they continue to hire and expand at a time when other major tech companies have announced layoffs and hiring freezes.
“Microchip has enjoyed significant and sustainable growth in recent years, and our team in India is a key contributor to that success,” said Srikanth Settikere, Vice President and Managing Director. microchip technology india Private Limited. “This investment is another step towards expanding our capabilities in India, which in turn will provide greater long-term business opportunities both regionally and globally.”
Cushman & Wakefield was the advisor to the transaction.
Microchip Technology is headquartered in Chandler, Arizona, with development centers in Bangalore, Hyderabad and Chennai with a total of 2,000 employees.
The deal is the first of several investments by Microchip to expand its research and development footprint in India.
One Golden Mile (OGM) is a premium commercial property co-promoted by Orion, Ascar and Terminus, with a total footprint of 500,000 sq ft comprising boutique office space and high-street retail.
In a joint statement, One Golden Mile Managing Partners Pushchin Reddy and Ritwik Mali said, “Our aim for this project was to create true value differentiation through design and superior specifications to enable businesses to reach their maximum potential and gain competitive advantage. be enabled to do.” ,
The deal indicates a positive outlook for the commercial office segment in Hyderabad.
Furthermore, it reaffirms the belief that demand for well-designed office space will persist despite concerns of oversupply, remote working and the global economic downturn.
Veera Babu, managing director of the Hyderabad office of Cushman & Wakefield, said, “Hyderabad is at the forefront of innovation in the semiconductor industry, and Microchip’s investment in Hyderabad confirms the city’s position as a preferred choice for semiconductor firms. “
According to the report by Cushman & Wakefield Office, the net office absorption in 2022 was 36.5 million sq. ft. Bengaluru, with a 28% share, accounted for the lion’s share of the all-India net absorption for the year, followed by NCR (20%). and Hyderabad (15%).
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