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Keppel Land invests US$25m in India-based coworking operator
KEPPEL Corporation's property arm Keppel Land on Thursday announced that it has invested US$25 million in India-based coworking operator Smartworks Coworking Space.
Smartworks provides flexible spaces for enterprise companies, and counts Amazon Web Services, Bacardi Limited, DHL and Ernst & Young among the 400 organisations that use its 23 operational centres. Its footprint currently spans 2.3 million square feet in nine cities, and it plans to grow this to 20 million sq ft over the next five years.
Said Keppel Land CEO Tan Swee Yiow: "Smartworks' innovative business model, coupled with its strong knowledge of the Indian enterprise office segment an execution abilities, is highly scalable and relevant, particularly in India's growing market for commercial office spaces. This investment allows Keppel Land to enter one of the world's fastest-growing flexible office markets, opening doors for further growth through this collaboration."
He added that the investment opens up opportunities for collaboration betwee Smartworks and Keppel Land's smart serviced co-office platform KLOUD.
Noting that Smartworks is cash-flow positive and profitable at a consolidated level, Smartworks founder Neetish Sarda said: "With this strategic investment by Keppel Land, we will be able to scale up even more rapidly across India's Tier 1 and Tier 2 cities and further invest in building up our next generation product, improving client experiences, as well as boosting our talent and technology."
The transaction is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corp for the current financial year.
Keppel Corp shares closed flat at S$6.86 on Thursday before the announcement.