Intel is selling its Bengaluru office and leasing it back from the new owner. The sale will free up capital and simplify Intel’s real estate portfolio. The sale is expected to close in Q2 2023.
The Bengaluru office is a 1.2 million square foot facility in the Sarjapur Road area. It houses around 3,000 Intel employees. The new owner has not been disclosed.
Tech companies, including IBM, Google, and Microsoft, have been selling their real estate assets. Rising real estate costs and the desire for flexibility are driving this trend.
By selling the Bengaluru office, Intel can allocate capital for other purposes, like research and development. It also simplifies their real estate portfolio and ensures a place for employees.
It remains to be seen if other tech companies will follow Intel’s lead in selling their Bengaluru office buildings. The city is a major tech hub in India with high demand for office space. More sales could potentially lower office space prices.
