Air India to lease 400,000 sq ft office space in Gurugram

AIR INDIA

Air India is in talks to lease about 400,000 sq ft of office space at Vatika’s office complex in Gurugram, Haryana.

The erstwhile national airline now owned by the Tata Group has already signed a letter of intent (LoI) for about 200,000 sq ft with the option of doubling the space later. The airline will shift all offices to this building, one of them said. Other Tata airlines – Vistara and AirAsia – may also shift to the same complex later.

“Air India is planning to consolidate and was initially looking for a property with Tata Realty, but that building is part of SEZ. Now, they have decided to move to this building, which is on the National Highway,” said one of the people aware of the deal.

Air India to lease 400,000 sq ft office space in Gurugram

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The Vatika project, One on One, on National Highway 8 is spread across 2.2 million sq ft and is being developed in two phases with an investment outlay of INR 1,200 crore. CBRE India facilitated the deal.

According to a report from Bussiness Today, Air India Executive Director Harpreet A De Singh has been given the responsibility to complete the transition. Singh will be assisted by consultants from Ernst & Young and a team of professionals from Tata Realty, it said.

Air India has a total of 12,085 employees of which 8,084 are permanent and 4,001 are contractual.

The Indian commercial real estate (CRE) office market saw net absorption rise 62% sequentially in the quarter ended June to 9.6 million sq ft, the best quarterly performance since the quarter ended December 2019 which saw 10.7msf of net absorption, according to a report by ICICI Securities.

The Tata group took over the management of Air India on January 27 after winning the bid for the airline on October 8 last year. Air India has a total of 12,085 employees of which 8,084 are permanent and 4,001 are contractual. Air India Express, its low-cost international arm, has 1,434 employees.

ALSO READ – Air India intends to purchase a 100% stake in AirAsia India; Tatas to relocate all 4 airlines to Gurgaon

(With Inputs from The Economic Times)

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