In the last 4 months, Amazon India has fortified plans (announced last year) to expand warehousing operations by 40% and has leased a total of 2.5 million sq.ft. space, spread across Mumbai, Bengaluru and Hyderabad. The US based e-com giant is also currently negotiating with Blackstone Group’s Horizon Industrial Parks to lease another half a million sq.ft. of warehousing space in Delhi and Alipore.
“Amazon is looking to set up a built-to-suit facility. The deal is expected to take at least two months. The proposed in-city warehouse will come up on a part of the 36 acres land bought by Blackstone in Delhi from TARC in a deal valued at INR 295 crore,” said two people aware of the matter.
Amazon has been signing deals with an aim to augment its warehouses across India, owing to the increasing e-com demand ever since the pandemic struck. Since late 2021, it has sealed 2 major deals with ESR for 6 lakh sq.ft. warehouse space at Bhiwandi and 1 million sq.ft. warehouse space at Shamshabad in South Hyderabad. It signed another major deal with LOGOS, for 1 million sq.ft. warehouse space at Devanahalli Industrial and Logistics Park.
“The firm has been very aggressive in the past four months and is looking to ramp up operations further. Amazon is also looking to sign some deals with city warehouses as demand for e-commerce continues to grow,” said a person quoted above.
We are witnessing industrial demand pick up across cities such as Chennai, Pune, and Delhi-NCR. We are also witnessing active leasing enquiries in emerging Tier II markets on account of the need for last mile delivery for customers.”~ Shyam Arumugam, Managing Director, Industrial and Logistics Services, Colliers India
Amazon, with this expansion in warehousing capacity, will be spreading its wings over 15 states, supporting 8.5 million sellers throughout the country.
Blackstone is currently valued at USD 60 billion across all sectors, out of which, USD 20 billion is contributed by real estate accounts with over 40 investments – all of it making Blackstone a top-notch institutional investor in India. Horizon Industrial Parks is Blackstone’s logistics development platform birthed with the acquisition of Embassy Industrial Parks, TARC and Allcargo Logistics. Currently, the platform has 35.5 million sq. ft. of logistics space under its portfolio and Greenbase Industrial and Logistics Park in association with Hiranandani.