BANGALORE: Nasdaq-listed IT software firm Cognizant has bought a 11.04-acre land parcel that includes a 250,000 sqft operational office space facility in Hyderabad, from Bangalore-based technology park developer DivyaSree.
The Rs 112-crore transaction, struck in Hyderabad's IT hub of Gachibowli, gives the $7.35-billion IT services company room to further develop around 1 million sqft of office space. Last year Cognizant had bought 18-acres of land in Kochi; work here has begun.
Despite political uncertainties over the status of Hyderabad, the city's IT corridor of Madhapur, Kondapur, Hitec City and Gachibowli continue to remain the most active commercial micro-market, owing to the expansion and relocation requirements of IT/ITeS firms. Industry analysts estimate that around 3-million sqft of commercial office space is likely to be released into Hyderabad's IT corridors over the next six months.
Major IT companies are all expanding facilities as demand remains robust . Last week TOI reported that Infosys Technologies had bought a 300,000 sqft facility for Rs 115 crore in Bangalore.
In Hyderabad, Cognizant has been working out of a leased office it got when it acquired the business interests of UBS in India in 2010. This facility nowhasover 3,000 employees working out of it.
Confirming the deal, a Cognizant spokesperson said, "The facility will support our expansion in Hyderabad. It is at a conveniently accessible location in the city's financial district." International property consultants CBRE South Asia had structured the deal.
As per Cognizant's annual report, its India real estate development programme includes construction of 10.5 million sqft of new space between 2011 and the end of 2015. "This programme includes an expenditure of over $700 million (over Rs 4,300 crore ) during this period on land acquisition, facilities construction and furnishings to build new company-owned development and delivery centres in regions primarily designated as SEZs, located in India," the company's annual report for 2012 says.