A.P. Moller – Maersk’s subsidiary Damco India has leased warehousing space spread over nearly 2.43 lakh sq ft for five years in Bhiwandi near Mumbai.
With the lease rental set at Rs 5.71 crore for the first year, the agreement’s clause will escalate the rentals by 4% every 12 months.
Out of the total tenure of the lease, the first three years will be a lock-in period for Damco India and the landlord will have a lock-in period of the entire five years.
Damco India has paid a security deposit worth over Rs 1.90 crore for the transaction. While the deal was registered in October, the company’s leave and license agreement commencement date is April 18, 2022, as it was provided with dry access to the space with the commitment to read the related infrastructure, showed the documents accessed through CRE Matrix, a real estate data analytics firm.
The company announced the launch of this facility in September.
A.P. Moller – Maersk, in september inaugurated two new warehouses in Haryana’s Farrukhnagar and Uttar Pradesh’s Dadri taking its total warehousing footprint to 3.3 million sq ft spread across more than 20 facilities in India. Of these, the facility at Farrukhnagar is spread over 4.20 lakh sq ft and is connected to the busy manufacturing hub of north India.
As per its announcement in September, the company said that its proximity to the Western Direct Freight Corridor (DFC), Farrukhnagar Warehouse will be a key facility for retail, FMCG, and large eCommerce customers. The Dadri Warehouse of Maersk, spread over 1 lakh sq ft is located within the Inland Container Depot (ICD), offering customers bonded warehousing solutions.
Being at the confluence of Western and Eastern DFC, having a rail head connection, proximity to eight national highways, and Jewar Airport coming up within a 60 km range, this warehouse helps support its customers’ supply chains. The demand for warehousing space has stood out in the last few quarters led by the penetration of e-commerce and growth of third-party logistics in the middle of the ongoing pandemic scenario.
A boost in infrastructure spending and in turn the overall demand for modern warehousing is expected on the back of favorable regulatory backdrop along with the government’s support through policy and reforms.
The industrial and logistics segment has become a key growth driver in real estate and expansion of the online retail sector has resulted in greater demand for warehousing, thereby resulting in higher investments in infrastructure and supply chain modernization.
