The 250,000-square-foot office building on Bengaluru’s Old Airport Road will be sold by US technology firm Intel as part of attempts to maximize the value of its real estate holdings.
The company Intel Corp. develops, produces, and sells computer hardware and software. It provides platforms for computing, networking, data storage, and communications. Client Computing Group (CCG), Data Centre and AI (DCAI), Network and Edge (NEX), Mobileye, Accelerated Computing Systems and Graphics (AXG), Intel Foundry Services (IFS), and All Other are the company’s operating segments.
Platforms for laptops, 2-in-1 systems, desktops, tablets, phones, wireless and wired connection devices, and mobile communication components are included in the CCG section. The DCAI division provides silicon devices for communications service providers and high-performance computing clients, as well as solutions to cloud service providers and business clients.
The NEX market category provides computing system solutions ranging from rigid fixed-function hardware to all-purpose computing, acceleration, and networking devices running cloud-native software on programmable hardware. The Mobileye division creates solutions for autonomous vehicles and driving assistance. The AXG category offers goods and innovations designed to assist clients in tackling the most challenging computational issues.
According to many persons familiar with the situation, the transaction, which is projected to be worth more than 450 crores, would likely follow a sales-cum-lease format for three years, with a one-year lock-in term for the asset.
According to two people, several renowned builders are actively engaged in the bidding process for this highly sought-after property. They also said that the transaction is anticipated to be completed soon.
The decision was made as a result of the hybrid work model used by IT/ITeS companies, who continue to evaluate and maximize the use of their space to save costs. Additionally, Intel wants to combine several of its Bengaluru locations.
“As a hybrid-first company, we are continuing to assess and optimize our space utilization to create more vibrant workspaces for our employees when they are on-site, while also achieving cost reductions,” the company said in an emailed response to ET’s queries. “As such, we will be consolidating certain offices in Bengaluru. Bengaluru remains an important design and engineering center for Intel, with approximately 14,000 employees based in the region.”
In response to the global financial crisis and the IT industry’s recent round of layoffs, many technology businesses are consolidating and reassessing their real estate assets. Their desire to save expenses has caused them to absorb fewer offices.
