Avigna Space, the warehousing arm of Avigna Group has informed that it is planning to invest INR 2,000 crore to develop nearly 10 million sq ft of warehousing space in southern India.
As per reports, the company will develop 95 lakh sq. ft. including 3 million sq. ft. at Karnataka’s Hosur and 4 million sq feet at Hoskote, besides 1.5 million sq feet at Chennai and one million sq ft at Andhra Pradesh’s Nellore.
“The Hosur one will be developed in three phases with 10 lakh sq ft in each phase. The total investment in this would be Rs 400 crore and the first phase will be operational by December this year,” said Abhijit Verma, executive director and CEO, Avigna Space.
The company which offers turnkey infrastructure and warehousing solutions in major industrial areas informed that it has plans for development in Coimbatore and Madurai.
Avigna Space plans to first monetise its existing land bank to fuel further expansion.
“We will first monetise the land bank we have and to grow in other parts of the country, we intend to acquire fresh land. Our ultimate goal is to come up with a REIT.”
~ Abhijit Verma, executive director and CEO, c
According to a Knight Frank India report 2020, the institutional investment on the warehousing sector has seen investment volumes growing from USD 125 million in 2016 to USD 2.3 billion in 2017. In 2018 and 2019 it was recorded at USD 2.2 billion and USD 1.8 billion respectively. In 2020, the investor activity was on account of COVID disruption.
However, as we move towards the new normal, the sectors seems to make a quick recovery. “Amidst these upheavals in the overall market dynamics, which will see many interim fixups and also trends which will fade soon, we reckon that the warehousing sector is a long-term play whether it is in terms of the lease tenures or investment horizons,” the Knight Frank report observed.
