Mahindra Logistics has leased more than 6,53,000 sq ft of warehousing space at Shakti Logistics Park in Bhiwandi near Mumbai for a period of five years.
In the first year, the company will pay a rent of ₹11.28 crore, which will increase by 4.5% every 12 months.
A security deposit equal to three months of rent of over ₹2.82 crore has been paid to the property owner, RKJ Shakti Logistics Park LLP.
Although the deal has been concluded and registered, the effective month for the payment of rent will be April as the agreement includes a rent-free period of 120 days starting from December 1, 2022.
Registered on December 27, the agreement provides Mahindra Logistics exclusive rights over a parking area of nearly 1,00,000 sq ft, documents accessed through CRE Matrix shows.
Over the last few year, Bhiwandi, has emerged as the country’s most prominent logistics and warehousing hub given its proximity to areas including Mumbai, Thane, Navi Mumbai and the entire metropolitan region. Online retail companies including Amazon, Flipkart and third-party logistics companies such as DHL, Blue Dart, DTDC and Safexpress, have built warehouses in Bhiwandi.
Last month, Welspun One Logistics Parks, also leased an over 70,000 sq ft standalone warehousing facility in Bhiwandi. Global logistics company AP Moller-Maersk’s subsidiary picked up a warehousing space spread over 2,43,000 sq ft under a five-year lease.