Commercial real estate investment platform Strata on Monday acquired the 11-storey Cafe Coffee Day Square, located on tony Vittal Mallya Road area in Bengaluru, for Rs 150 crore.
Strata acquires the iconic Cafe Coffee Day Square in Bangalore for Rs 150 crore. The prime 11-storey building, a symbol of the city's commercial prowess, spans over 1 lakh sqft and is situated in the prestigious Vittal Mallya Road area.
Commercial real estate investment platform Strata on Monday acquired the 11-storey Cafe Coffee Day Square, located on tony Vittal Mallya Road area in Bengaluru, for Rs 150 crore.
The CCD headquarters has a built-up area of over 1 lakh sqft spread across 11 floors with each floor measuring around 9,000 sqft. The property is surrounded by upscale malls, premium retail outlets, restaurants, transportation hubs, ATMs, and more, Strata said in a statement.
The largest coffee chain has been in financial trouble which led to founder VG Siddhartha to commit suicide in July 2019. The company had run up to debt pile of over Rs 7,200 crore from banks and external investors like US fund major KKR.
July last, the company was taken to the insolvency court NCLT by IndusInd Bank for Rs 94 crore dues, but after settling the dues out of court it was taken out of the bankruptcy proceedings. The company is still not out of the woods given its high debt level.
According to the FY23 annual report of its parent firm Coffee Day Enterprises, CCS had 469 cafes across 154 cities and 268 CCD Value Express kiosks.
It operated 48,788 vending machines that dispense coffee in corporate workplaces and hotels under the brand. In FY23, its consolidated net operational revenue was Rs 869 crore and had reported a loss of Rs 67.77 crore.
The CCD property is Strata’s seventh asset in the Garden City and with this deal, its Karnataka assets value over Rs 410 crore. Nationally, Strata has 34 assets under its portfolio measuring over 3.7 million sqft. Some of its marquee properties include premium office spaces across Navi Mumbai, Pune, and Hyderabad.
Sudarshan Lodha, cofounder and chief executive of Strata, said, the CCD Square is a grade-one commercial property and among the notable properties in the city.
Through its tech-enabled platform, Strata has over 100,000 members worldwide, including over 3,000 investors who comprise NRIs, HNIs/UHNIs, family offices, top management from Fortune 500 companies, and institutional investors.
Strata is funded by marquee investors like Kotak Investment Advisors, Gruhas Proptech, Elevation Capital, Mayfield India, and others.