Flipkart leases office space from Embassy in largest deal
In the largest office leasing deal, homegrown e-commerce giant Flipkart on Saturday agreed to take 3 million sq ft of prime office space in Bangalore from realty firm Embassy group at an annual rent of Rs 300 crore.
The lease contract is part of Flipkart's expansion plans as it will hire 12,000 people this year to beef up support and technology operations.
The Bangalore-based firm has chalked out an ambitious expansion plan as it aims to take on rivals like Snapdeal and Amazon to grab a lion's 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," property consultant JLL India Country head and chairman Anuj Puri told PTI. JLL India aided Flipkart in securing 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.
Embassy Group chairman and managing director Jitu Virwani said: "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."
The rental will be around 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, Virwani said.
Flipkart declined to comment.
"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 MD Juggy Marwaha said.
JLL had shortlisted over 10 developers and Embassy was selected after a long due and rigorous process of due diligence, he added.