Strata Acquires Cafe Coffee Day Square in Bengaluru for Rs 150 Crore

In a significant real estate transaction, Strata, a prominent commercial real estate investment platform, has acquired the iconic Cafe Coffee Day Square located in the heart of Bengaluru's tony Vittal Mallya Road area for a substantial sum of Rs 150 crore.

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Cafe Coffee Day Square: A Landmark Property

The Cafe Coffee Day Square, serving as the headquarters of the renowned coffee chain, boasts an impressive built-up area of over 1 lakh square feet spread across 11 floors. Each floor of this magnificent structure spans approximately 9,000 square feet, providing ample space for various commercial activities.

The property enjoys a prime location, surrounded by upscale malls, premium retail outlets, restaurants, transportation hubs, ATMs, and other essential amenities. This strategic positioning enhances its appeal to potential tenants and investors.

Cafe Coffee Day's Financial Struggles

The acquisition of Cafe Coffee Day Square comes at a time when the coffee chain has been grappling with financial challenges. The company's founder, VG Siddhartha, tragically committed suicide in July 2019, leaving behind a significant debt burden of over Rs 7,200 crore owed to banks and external investors, including the prominent US fund major KKR.

In July 2022, IndusInd Bank filed a petition against the company in the National Company Law Tribunal (NCLT) for unpaid dues amounting to Rs 94 crore. However, the company managed to settle the dues out of court, thereby avoiding bankruptcy proceedings.

Strata's Growing Portfolio

With the acquisition of Cafe Coffee Day Square, Strata further expands its portfolio of commercial assets in Bengaluru, now totaling seven properties. This latest acquisition elevates the value of Strata's Karnataka assets to over Rs 410 crore.

Nationally, Strata boasts an impressive portfolio of 34 assets, encompassing over 3.7 million square feet of prime real estate. The company's portfolio includes premium office spaces across key cities such as Navi Mumbai, Pune, and Hyderabad.

Strata's Vision and Funding

Sudarshan Lodha, the co-founder and chief executive of Strata, expressed his enthusiasm about the acquisition of Cafe Coffee Day Square, describing it as a grade-one commercial property and one of the most notable properties in the city.

Strata's tech-enabled platform has garnered over 100,000 members worldwide, including more than 3,000 investors. These investors comprise non-resident Indians (NRIs), high-net-worth individuals (HNIs)/ultra-high-net-worth individuals (UHNIs), family offices, top management from Fortune 500 companies, and institutional investors.

Strata's growth and success have been fueled by the support of marquee investors, including Kotak Investment Advisors, Gruhas Proptech, Elevation Capital, Mayfield India, and others.

Conclusion

The acquisition of Cafe Coffee Day Square by Strata marks a significant milestone in the company's journey, further solidifying its position as a leading player in the commercial real estate investment sector. With its strategic investments and tech-driven platform, Strata continues to attract investors and expand its portfolio of high-quality assets across India.