UK based company into Business Centres and Serviced Offices since 2004, Avanta, decided to expand its operations to India in 2007. Avanta successfully leased out 20,340 sqft in Statesman House, at Barakhamba Road Connaught Place, New Delhi. Unfortunately, the global market, immediately after the conclusion of Avanta's expansion to India, entered into recession and the ripples of the same affected the Indian Market immensely.Project Details
• Property : Statesman House, Connaught Place, New Delhi
• Transaction Size : 20,340 sq.ft.
• Transaction Type : Re-Negotiation of Rentals
Keeping in mind the Global Market scenario, RRPL took an uphill task to turn the wave for Avanta. The lease was signed at Rs. 290/ sqft before the market entered recession. The challenging task was convincing more than 50 landlords in the strata sold area of 20,340 sqft in Statesman House, Connaught Place. A lot of companies were downsizing and relocating to cheaper office premises but due to huge capital investment done by Avanta in furnishing such a premium premises, it was not possible for Avanta to relocate. RRPL started renegotiation on behalf of Avanta and gave them full confidence of delivering to their expectations. Since the property was still under the lock-in period , RRPL's endeavor was to make the situation a win-win for Avanta and landlords, both.Transformation
After having constant meetings and discussions for almost 4 months with landlords and apprising them of the prevailing market scenario, the following was delivered:
1. Rent Re-Negotiation
(a). The crash of 2008 brought the rentals of Connaught place down by 25% to 40%.
(b). Statesman House being one of the prime buildings of Connaught Place, the rental of Rs. 290/ sqft was brought down to Rs. 200/ sqft for Avanta.
2. Rental Advantage
(a). Avanta had invested in the fit-outs of the area taken on lease and lock-in period was applicable for next few. The re-negotiated rent resulted in a monthly saving of around 18 Lakhs per month to Avanta.
(b). Inspite of the erratic global scenario, Avanta was able to survive the recurring operational cost effectively. As a result, with right strategy and hard work, RRPL delivered a profitable equation in the toughest times the Indian Real Estate market had ever witnessed. Re-negotiating with over 50 different Landlords and getting everybody in sync was a target achieved in the best spirit by RRPL for Avanta. Today, Avanta is still operating out of some premisses and has further expanded it operation in Saket and Gurgaon.