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Amazon to lease out 1.2 mn sq ft

According to sources, Amazon India will lease out the space in phases over three to four years

Mansi Taneja & Itika Sharma Punit  |  New Delhi/ Bengaluru 

Amazon India

In line with Flipkart and Snapdeal's moves to expand office space in Bengaluru, e-commerce major Amazon India has leased out 1.2-million-sq ft prime office space with information technology (IT) park developer Bagmane in the city.

The deal, which was concluded on Wednesday, comes just a couple of months after the US-based company said it had put investments in Karnataka on hold until taxation issues with the state government were resolved. Amazon India had, in April, announced plans to set up its largest fulfillment centre in India at Telangana.

According to sources, Amazon India will lease out the space in phases over three to four years. "They will first start an incubation centre at the facility and occupy the entire space over a period," a source said. An Amazon India spokesperson said the firm does not comment on "what we may or may not do in the future".

Real estate consultancy firm JLL India, which was part of Flipkart's office lease deal a few months ago, managed the lease transaction for Amazon India as well. When contacted, JLL India refused to comment on the development.

This is the second-biggest deal in this space in recent times after Flipkart leased out about 3 million sq ft in phases in Bengaluru from realty firm Embassy Group few months back. It was a part of Flipkart's expansion plans as it will hire 12,000 people.

While Amazon India has not shared its expansion or hiring plans in India, the company had last year announced an investment of $2 billion (about Rs 12,500 crore) in the country. The company already has several offices in Bengaluru and experts said this could be a move to consolidate its presence.

E-commerce players have been one of the highest commercial real estate consumers in Bengaluru over the last few years. Snapdeal recently set up a development centre in the city, its first such centre outside Delhi. Housing.com is also looking to set up a development centre in the city.

"The centre in Bengaluru can become even larger than our Mumbai headquarters."

First Published: Thu, May 21 2015. 00:10 IST
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