magnolia quality development corporation: Magnolia Quality Development Corporation leases 45,000 sq ft in Gurgaon

Magnolia Quality Development Corporation (MQDC), a property development company headquartered in Bangkok, has secured a lease for about 45,000 square feet of space in Gurgaon, marking the establishment of its second coworking centre in the country.

Chulamas Jitpatima, country director of the company’s Indian subsidiary confirmed the transaction.

MQDC made its entry into the Indian market in 2019 with the launch of Whizdom Club, a coworking facility located in Delhi. However, the company temporarily halted its expansion efforts thereafter.

In addition to the latest development, MQDC is currently engaged in negotiations with various landowners to acquire a sizable parcel of land for a residential project in the National Capital Region (NCR).

When MQDC initially entered the Indian market, it outlined plans to inaugurate five-six centres within three years, with Bengaluru and Mumbai earmarked as potential locations.

According to CBRE, the cumulative share of banking, financial services and insurance (BFSI) firms and flexible space operators increased to 44% in the quarter to March from 20% in the previous quarter due to a significant increase in large-sized deal closures.

The leasing activity was mainly led by flexible space operators, BFSI firms and technology companies during the January-March period. “The share of leasing by flexible space operators in overall leasing has been growing post pandemic. Both domestic and global operators are looking to expand presence as the existing centres are running at a very low vacancy. We will see the share grow further in the coming quarters,” said Vibhor Jain, managing director, North India, Cushman & Wakefield.

MQDC intends to start its flagship luxury residential real estate project in India and is in talks with property consultants and developers to explore a transaction.

In the coworking segment, the company plans to tread cautiously and will keep the size of the centre between 20,000 and 25,000 sq ft. Its focus in the coworking segment is small and medium enterprises, multinationals and mature startups since it is developing premium spaces.

In the last quarter of 2022-23, Gurgaon accounted for the majority of leasing activity with a 72% share, led by submarkets such as Golf Course Extension Road, NH8 Prime and Sohna Road. Noida, on the other hand, accounted for a 25% share of the leasing activity, according to data from Cushman & Wakefield.

ENDS