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Bagmane Group is reportedly in the process of acquiring the Chennai office property of US-based technology firm Cognizant Technology Services for approximately INR 800 crore. This property, which served as Cognizant's India headquarters for over two decades, spans 13.39 acres and offers 560,000 square feet of office space along Chennai's IT corridor. Sources indicated that the deal, currently awaiting board approval, includes the potential to develop an additional 3 million square feet. This transaction is part of Cognizant's broader restructuring strategy, announced in 2023, aimed at reducing costs by USD 400 million over two years. The company plans to relinquish 11 million square feet of office space worldwide and has already reduced its Chennai office footprint by 1.15 million square feet.
According to multiple reports, Bagmane Group is expected to acquire the office property of US-based technology company Cognizant Technology Services in Chennai for approximately INR 800 crore. This property, which functioned as Cognizant's India headquarters for more than two decades, spans 13.39 acres and comprises 560,000 square feet of office space along Chennai's IT corridor. Advertisement
The property has the potential for further development of 3 million square feet once acquired. The deal, which is currently under board approval, is expected to be finalised soon. This transaction is in line with Cognizant's strategic restructuring initiative, which was announced in 2023 with an objective to reduce costs by USD 400 million over two years. A major component of this strategy involves relinquishing 11 million square feet of office space on a global scale.
Cognizant had already reduced its office footprint in Chennai by 1.15 million square feet in 2023, reflecting its ongoing efforts to enhance operational efficiencies. The company is also scaling down its leased office spaces in key Chennai locations, including Ramanujan IT Park, DLF, and St Mary's Road offices in R A Puram. Additionally, Cognizant had previously decided to offload a 14-acre campus in Siruseri, Chennai.
The Chennai land in question was leased from the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) and includes a built-up area of 600,000 square feet, housing Cognizant's largest facility globally.
India remains a crucial base for Cognizant, with approximately 70% of its global workforce of around 337,000 employees based in the country. The company maintains a strong presence in cities such as Bengaluru, Bhubaneswar, Chennai, Coimbatore, Delhi-NCR, Hyderabad, Indore, Kochi, Kolkata, Mangaluru, Mumbai, and Pune.
Chennai, however, is still an attractive location for office spaces. As per CBRE, Chennai is expected to add about 12-13 million sq ft of premium office space between 2025 and 2026, driven by strong demand from corporates. Office leasing by Global Capability Centres (GCCs) is projected to reach 3.2 million sq ft by 2025. Chennai is ranked third in GCC leasing activity after Bengaluru and Hyderabad from 2022 to September 30, 2024.
Bagmane Group is renowned for developing Grade A corporate real estate, primarily in Bangalore. They have a strong portfolio of built-to-suit projects. Their expansion plans suggest a focus on developing high-quality commercial spaces that align with their existing reputation in Bangalore. If this deal goes as planned, it would mark the developers entry into Chennai's commercial real estate market.
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