Flipkart has completed India’s single largest of office space leasing deal to date by signing up for a two million square feet of custom-built office campus in Bengaluru, as it seeks to expand its operations and workforce.
In October, Flipkart entered in o an agreement with Embassy Group to lease a total three mil ion sq ft. The same has now been revised to two million sq ft. “Two million sq ft of office space seats around 20,000 people, Flipkart is ooking to increase its headcount,“ a person involved in the ransaction told ET.
The country’s biggest ecommerce company will move all its operation from multiple offices to one location. It currently occupies 0.5 million sq ft across Bengaluru, including 106,000 sq ft in Mantri Commercio, 37,674 sq ft in Salarpuria Tech-Point and 9,000 sq ft in Brigade Court.
The new campus will come up in Embassy Tech Village on the Outer Ring Road in Bengaluru -a property owned by US private equity giant Blackstone and city based builder Embassy Group. “The new campus will be ready in he next six months. The builder has also offered a two lakh sq ft of ncubation centre in the city ,“ said the person, requesting anonymity .
Juggy Marwaha, MD, South India for JLL, the advisor to the ransaction, said, “With the current supply-demand dynamics in Bengaluru, large occupiers who have better visibility of their business will find this as the only route of locking in future spaces. This is by far the single largest commitment of office space anywhere in the country as a one shot take up without any option spaces reserved,“ he said.
Flipkart, in an email response, confirmed the transaction. The company will pay in excess of ` 190 crore in rental for the two million sq ft campus over the lease period of 20 years. The deal . 50 has been signed at a rental of ` per sq ft.
Ecommerce giants including Snapdeal are locking in large commercial spaces across the country as they look to expand operations. In a recent transactions, cab service provider Ola signed on 20,000-sq ft of prime office space at Embassy Golf Links, Fashion e-tailer Jabong took up a one-lakh sq ft office space in NCR and real estate portal Housing.com leased 1.50 lakh sq ft at the Hiranandani complex in Powai, Mumbai.
The top eight cities of India recorded overall a net office space absorption of 7.9 million sq ft in the January-March quarter of 2015, a year-on-year rise of 35%.Flipkart, which recently raised $1 billion in fresh funding, acquired fashion portal Myntra for around Rs 2,000 crore to create an entity with $1.5 billion annual sales in mid 2014, marking the country’s biggest merger and acquisition transaction in the ecommerce space. Flipkart and Myntra, which will remain as separate entities, are looking to scale fashion business jointly.