Office India calls of Deal with Bangalore-based Brigade Group

Oracle India, which was in talks with Bangalore-based Brigade Group for 1.2-million sqft commercial space in its Brigade Gateway project, has called off the deal. The IT major was planning to take office space in Brigade Northstar, a 30-floor tower complex within Brigade Gateway, to consolidate its multiple leased spaces in Bangalore. Oracle told its employees in an email communication: “As you know, Oracle Real Estate has been examining the Brigade Northstar facility, as part of our strategy to consolidate our multiple leased spaces in Bangalore. This is to inform you that Oracle has decided not to pursue this location.” Oracle had planned to transfer 8,000 employees to the Northstar facility.

Had the agreement been successful, it could have been one of the biggest commercial space deals in Bangalore and could have made Brigade richer by Rs 600 crore. Oracle was in talks with Brigade for almost six months but the differences over in the prices quoted by the two led to the collapse of the deal. Oracle and Brigade Group refused to comment on the issue. Oracle was looking to move its first team to the new location approximately 12 months from November 2009. The company was planning to centralise its common operations and administrative functions.

In an earlier email communication to its employees, Oracle had said the new location was expected to fulfill the space requirements of many lines of business and would have accommodated approximately 50% of Oracle’s Bangalore staff. The rest were expected to occupy Oracle Technology Park and a few other locations. Northstar is a part of Brigade Group’s 40-acre township called Brigade Gateway and includes apartments, Sheraton Hotel, malls and Columbia Asia Hospital.