Top Companies Flock to India to Harness AI Talent
India is attracting a significant number of top companies looking to tap into the country's vast pool of AI talent. According to Shetty, the country boasts the largest data scientist talent and second-largest AI talent in the world.
Expansion of GCC Footprint
Shetty notes that only Fortune 500 companies used to be the primary players in the Indian market. However, with the increasing demand for AI talent, Fortune 2000 companies and meaningful mid-market companies are now setting up their operations in the country.
- GCC Activity: Despite job losses, Global Capacity Centers (GCCs) are experiencing a lot of "meaningful" activity.
- Office Absorption: The country recorded its highest ever office property absorption of 83 million square feet last year, with 45% contributed by GCCs.
- REIT Performance: The REIT achieved 60% leasing from GCCs and 67% of its rentals came from GCCs.
- Future Growth: Shetty expects a 200 bps jump in leasing from GCCs in FY27.
Organic Growth and Refinancing
The REIT is expected to see 50% growth from organic routes, including building its own properties and acquiring properties worth 12 million sq ft in the next 4-5 years in key cities such as Pune, Mumbai, and Bengaluru.
- NOI Growth: The REIT has guided for a 13% net operating income (NOI) growth in FY27, following a 15% growth in FY26.
- Distribution Growth: The REIT aims to achieve a 10% distribution growth in FY27.
Fund Raise Plan
Out of the planned Rs 9000 crore fund raise, Rs 5500 crore will be allocated towards refinancing, while Rs 1400 crore to Rs 1500 crore will be invested in construction, and the remaining amount will be used to replace high-cost debt.