E-commerce giant Flipkart on Saturday agreed to take 3 million square feet of prime office space in Bangalore from Embassy group at an annual rent of Rs 300 crore.
This contract is a part of Flipkart’s expansion plans. Flipkart will hire 12,000 people this year to gear up support and technology operations.
It aims to take on rivals like Snapdeal and Amazon to grab huge share of the estimated over $3-billion e-commerce market in India.
“Flipkart has signed an irrevocable letter of intent with Embassy Group for leasing 3 million sq ft office space. The final agreement will be signed within 90 days,” told Anuj Puri, country head and chairman of property consultant JLL India.
JLL India has aided Flipkart in getting the office space in the Silicon Valley of India.
“It is the biggest single occupier leased transaction, in terms of space volume, in India which demonstrates the beginning of Indian real estate office market recovery,” he added.
“3 million sq ft of office space will be leased to Flipkart in phases. We have won this transaction because of our reputation and experience of having dealings with large MNCs like Microsoft and IBM,” Embassy Group chairman and managing director Jitu Virwani said.
The rental will be approximately Rs 90 per sq ft per month for fully furnished office space, he added.
The office space located at Outer Ring Road, Bangalore is part of Embassy Group’s commercial project ‘Embassy Office Park’ in joint venture with private equity firm Blackstone, Mr Virwani said.
“This is the largest ever office leasing transaction in India. It has taken over a year of thorough due diligence and process led by JLL India. We are proud to partner with an Indian company that is leading the technology business in the country,” JLL India South India managing director Juggy Marwaha said.
Over 10 developers and Embassy was selected after a long due and tedious process of due diligence, he added.
“Being strategically located in the heart of Bangalore’s IT corridor, Embassy TechVillage is well connected to the IT hubs of Whitefield and Electronic City as well as the CBD. Our office parks are more than just brick and mortar workplaces – they are business ecosystems engineered to enhance productivity by building vibrant communities,” Mr Virwani said.
Located on Outer Ring Road in Bangalore Embassy TechVillage is a 106 acre big. It is planned as an integrated project with commercial components as well as retail and residential spaces.
Embassy Office Parks will also be constructing build-to- suit office spaces for clients including SEZand non-SEZ as part of Embassy’s integrated business park concept.