Oracle India's Deal with Brigade Northstar Falls Through
Oracle India has failed to close a deal with Brigade, a Bangalore-based real estate group, for a 1.2-million square feet office space within its project.
Plans and Setbacks
The IT giant, Oracle, had been planning to centralize its various leased properties in Bangalore by securing an office space in Brigade Northstar, a 30-floor tower complex within Brigade Gateway.
Notice to Employees
In a recent email to its employees, Oracle announced that the deal with Brigade could not be closed, and thus, the proposed location is no longer under consideration. The facility was intended to accommodate around 8,000 employees.
Details of Brigade Northstar
Northstar is part of Brigade Group’s 40-acre township known as Brigade Gateway. The development includes residential apartments, Sheraton Hotel, shopping malls, and Columbia Asia Hospital.
Potential Impact
The deal, if successful, would have been one of the largest transactions, potentially bringing Brigade a profit of Rs. 600 crore. However, despite six months of negotiations, differences in pricing could not be resolved.
Oracle's Future Plans
Oracle had planned to commence the move to the new location within 12 months from November 2009. The company aimed to centralize its administrative functions and streamline common operations at the new site. However, these plans are now on hold.
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