Flipkart Snaps India's Largest Office Leasing Deal in Bangalore for 3 Million sqft at Rs 300
Flipkart Snaps India's Largest Office Leasing Deal in Bangalore for 3 Million sqft at Rs 300 Crore/Yr
Flipkart, India’s largest e-commerce portal has closed the largest office space deal in Bangalore covering about 3 million sqft of space which would further be used to house its ever-growing staff. The Bangalore-based embassy office park is a joint venture between Embassy Group & Blackstone for building their sprawling office campus meticulously situated in the heart of Bangalore. The first phase of the delivery will commence within 24 months, as a plug and play model based office space of approx 1.5 million sqft would start operations at Embassy Tech Village on the Outer Ring Road in Bangalore by the end of January 2017 and around 2500 employees of Flipkart are expected to use this space initially. Also, there is an option to stretch this to 3.25 million sqft over the next 3-5 years, Embassy Group said in a statement. Embassy Tech Village is a 105-acre ritzy property which is a part of the IT corridor planned as an integrated project with commercial components as well as retail and residential spaces.
Being well-connected with IT hubs - Whitefield & Electronic City which marks it to be the most desired office space in for any technology-based company. Also, this property has enticed some of the top-notch companies like Sony, Nokia, Brocade, Autonomy, Creative, Ness and Blue Ocean. Apart from this, the deal has been finalized at a rate of Rs.85/sqft and Flipkart has agreed to pay 300 crore as rental for the next 10 years from the time of delivery which implies Rs 300 crore/year would be the rental overhead to be borne by Flipkart from 2017 onwards and 3 million sqft office space can effortlessly accommodate 10000-12000 employees. In addition to this, Jones Lang LaSalle (JLL) was the financial advisors of this giant real estate deal. "In a process that took over one year of rigorous due diligence and shortlisting of options, JLL aligned the rapid business growth of Flipkart alongside the diminishing supply position of Bangalore and yet managed to have a win-win deal for both Embassy and Flipkart", Juggy Marwaha, said by Managing Director, South India for JLL.
"We are delighted to have Flipkart as our esteemed tenant at the Embassy TechVillage and we're looking forward to having a long-standing relationship with them", as stated by Jitu Virwani, CMD of Embassy Group stated & whereas Flipkart has not issued any comment on this significant real estate deal.