With e-commerce fueling the demand for warehouses, Pardos Logistics, a subsidiary of Pardos Real Estate, buys 41 acres of land in Haryana to develop 1 mn sq ft of warehousing space, Anarock Group which facilitated the deal informed on March 29.
While the actual cost of the land is unknown, the current rate around the Ballabhgarh-Sohna Highway, where the land is, Is in the range of Rs 1.4 to 1.5 crore an acre.
“The land, which was acquired from a group of Delhi-based investors, will be developed over a period of 18 months with an investment corpus of approximately Rs 200 crore,”Akshay Uday, Sr Vice President- Anarock Capital.
In last two years, the Sohna-Ballabgarh market has gained popularity among investors ever since the industrial and warehousing player ESR India acquired land there to set up a 77-acre warehouse.
The ESR warehousing facility has been leased by players such as Amazon and Tata Croma.
The land was ideally located, benefiting from proximity to critical road infrastructure like the Delhi-Vadodara Expressway, Eastern Peripheral Expressway, National Highway 8, and KMP Expressway, Uday said.
“The warehousing and logistics sector has been one of the primary beneficiaries of the new post-pandemic market realities,”Shobhit Agarwal, MD & CEO, Anarock Capital
He adds, with the rise in manufacturing activities across the country, demand for warehousing and logistics assets had risen remarkably.
The expanding economy and changing business models, too, had been instrumental in the sector’s growth.
According to Anarock, the total pan-India Grade A warehousing stock as of 2021-end stood at approximately 140 mn sq ft., growing at 16 percent CAGR between 2018 and 2021. Of this, NCR accounted for 15-20 percent share.
With flourishing e-commerce segment, the warehousing demand is expected to see a new surge. The concept of Multi-level warehouses within the city limits are also expected to touch new highs.
The Indian warehousing sector has been catching the eye of both domestic as well as international private players, who are seeking to bridge the gap between cost and operational efficiency.
Over 70 percent of the modern warehousing capacity in India is concentrated in the top eight cities of the Mumbai Metropolitan Region, the National Capital Region, Bengaluru, Kolkata, Hyderabad, Chennai, Ahmedabad, and Pune.