Walmart-owned Flipkart is looking for a new address. India’s largest online retail platform is scouting for land to develop a campus that will house all its businesses, according to realtors and industry officials. The project is expected to cost Rs 1,500 crore.
One of Bengaluru’s oldest realtors said he was given a brief by Flipkart through an international realtor to find land for the ecommerce company.
“Flipkart is looking for 150 acres of land, located 50-60 km from Bengaluru, to build a campus as the company wants to consolidate all its business operations,” the realtor said, asking not to be identified. “The company wants to complete the entire development in four years and is asking for recommendations for a builder who can deliver quickly.”
Flipkart has already rejected two land reports submitted by the realtor but talks are still on, he said.
The company is also said to be looking for land for its proposed campus in Chennai and Hyderabad. Flipkart declined to comment on the matter.
The planned Flipkart campus project is expected to cost Rs 1,500 crore, according to industry officials. Going by the current real estate market in Bengaluru, the land should come at Rs 400-450 crore, said a real estate developer. The rest of the project cost will depend on the builder.
According to the brief, Flipkart wants to allocate a minimum of 25 acres of the 150-acre campus for warehousing.
“It will be a transit warehouse which will stock only products with short shelf life. The campus will also include an experience centre,” the realtor said. About 30 other realtors have been approached to look for the land, he said.
Currently, Flipkart operates out of Bengaluru with an office located on outer ring road. Its fashion-retail subsidiary Myntra has a separate office in the city.
Since Walmart is a majority stakeholder in Flipkart, the ecommerce giant may not be able to directly purchase land in India because foreign nationals are not allowed to acquire immovable property in the country.
“As of now, Flipkart is clear that it wants to purchase land. It will be an FDI investment. They have specifically asked for ‘gold-mine’ land that should appreciate in value,” said the realtor.