GRADE A WAREHOUSING
India’s Grade A warehousing supply to top 300 million sq ft by 2025
India's warehousing sector is expected to surpass 300 million sq ft by 2025, fueled by rapid industrial growth and a thriving real estate market. Pune and NCR lead in Grade A warehousing demand, while MMR saw a significant supply increase. Policy support and favorable economic conditions are attracting investments in the sector.
India emerges a top five destination for realty FDI
India ranked among the top five global destinations for cross-border capital in land and development site investments in the March quarter, with foreign investors accounting for about 55% of the inflows, according to real estate services firm Colliers. Significantly, 73% of new foreign investments targeted ready assets, as reported in Colliers' latest Asia Pacific Global Capital Flows report.
Avigna to raise Rs 1,000 crore for expansion plans, debt reduction
Bengaluru's Avigna plans to raise Rs 1,000 crore through an AIF for expansion and debt repayment. The AIF, including a greenshoe option, will focus on stabilized assets. Avigna aims to develop 10 million sq ft of warehousing assets in southern India, targeting robust industry growth amidst economic recovery post-Covid-19.
Why warehousing is a booming asset class for discerning investors in India
The demand for modern warehousing facilities is touching a new high as e-commerce and retail sales are seeing a surge with each passing day in India.
Storage Technologies stock lists with 90% premium on BSE SME platform
Storage Technologies Stock Price: The IPO, which was completely a fresh equity issue of 38 lakh shares, received a bumper response from investors with an overall subscription of over 200 times at close.
Warehousing companies, institutional investors pivot to meet shifting demands
The global institutional investor is looking to more than double its warehousing portfolio in the country to 100 million sq ft from 40 million sq ft in the next 3-5 years.
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Industrial and warehousing demand remains stable at 7 mn sqft in Q1 2024
In Q1 2024, India's industrial and warehousing space demand held steady at 7 million sq ft, with a 6% sequential leasing decline due to softened demand. Mumbai and Chennai led with 55% share, driven by 3PL and retail sectors. E-commerce leasing surged 2.3 times, reflecting changing consumption patterns. Supply matched demand with 7 million sq ft added, boosting developer confidence.
Property Share dives into warehousing sector, to raise investment in Flipkart-leased facility
Property Share plans to tie up warehousing assets in tier I and tier II cities, aiming for an AUM of over Rs 1,000 crore. It owns three warehousing assets in the UK and is raising capital against its first India warehousing asset in Jaipur, rented to Flipkart.
As India makes and consumes more, a new realty sector booms
Blackstone Inc. plans to double its Indian warehouse holdings, reaching 100 million sq ft. DP World, Metro Brands, and Zomato are also investing in the sector. Global investors have poured over $10 billion into the warehouse sector, with more capital expected in the coming years.
Warehousing & logistics sector leasing increase to 21% in 2023
The Warehousing & Logistics sector saw a rise in absorption, recording 37.8 million sq ft in 2023, a 21% increase from the previous year. Despite a 65% decline in investments in 2023, reaching USD 646 million, absorption surpassed the 2019 pre-pandemic level by 15%. Third-party logistics companies accounted for 44% of overall absorption, followed by Engineering and Manufacturing at 18%.
Zomato signs lease for its largest warehousing space in Bengaluru
Food delivery giant Zomato secures its largest warehouse yet, spanning 300,000 sq ft in Bengaluru's Sumadhura Logistics Park. The park, investing Rs 600 crore, plans expansion to 6 million sq ft. With the logistics sector booming, the move aligns with India's industrial growth, driven by initiatives like 'Make in India' and PLI schemes. Zomato's Q3 report shows a quadruple increase in profit to Rs 138 crore, with a revenue surge of 69% to Rs 3,228 crore.
Metro Brands leases 3.25-lakh-sq-ft warehouse in Bhiwandi for 5 years
Metro Brands Ltd, one of India's leading footwear and accessory retailers, has secured its largest warehousing space to date. The company has leased a custom-built 3.25 lakh square feet warehouse in Bhiwandi, near Mumbai, as part of its expansion strategy. The lease, directly from RK Builders, spans a duration of five years. This move underscores Metro Brands' commitment to enhancing its operational capabilities and meeting the growing demand for its products in the market.
India consumption story driving mall operators, warehousing players’ growth, ICRA
Though the net absorption was healthy in the first three quarters of this financial year, the vacancy levels rose by 100 bps to 20% as of December 2023 due to higher new supply, which has become operational recently and is yet to ramp up fully. ICRA expects the occupancy levels to sustain at 81-82% as of March 2024 and improve to 82-83% by March 2025.
Industrial & Warehousing demand consolidates in 2023, at about 25mn sqft
Despite a subdued H1, leasing activity surged in H2, witnessing a 26% half-yearly rise. Pune led with a 25% share, followed closely by Mumbai at 22%, while Chennai matched Delhi NCR in leasing demand. The Bhiwandi micro market in Mumbai and Chakan-Talegaon in Pune were the most active, jointly constituting 42% of the demand, mentioned Colliers.
Pragati Warehousing inks Rs 1,500 cr investment pact with Tamil Nadu government
Pragati Warehousing signed MoU with Tamil Nadu government to invest Rs 1,500 crores in logistics and industrial real estate. This investment will create direct employment for 500 people and generate 2,000 indirect jobs. Pragati is committed to transforming the Indian warehousing landscape. They are currently developing a Grade-A industrial and warehousing park in Sriperumbudur.
Industrial and logistics sector leasing to grow by 14% in 2024
The industrial and logistics sector in India witnessed an absorption of 49.4 million sq ft in 2023, a 6.7% increase from 2022. Tier-I cities accounted for 75% of the absorption, while tier II and III cities contributed 25%. Demand is driven by manufacturing, retail, and third-party logistics sectors.
Supply chain firm Prozo leases 99,771 sq ft warehousing space in Chennai
Prozo focuses on integrating technology and automation into the supply chain to provide end-to-end logistics support. They oversee supply chains for over 100 enterprises, including leading e-commerce players.
Allcargo Gati Ltd sets up surface transhipment centre and distribution warehouse on B'luru outskirts
Bangalore has become a crucial warehousing hub for express distribution and supply chain management company Allcargo Gati Limited. The company has launched a state-of-the-art Surface Transhipment Centre and Distribution Warehouse (STCDW) in Mayasandra, Hobli, near Bengaluru, Karnataka. The STCDW, spread over 3.5 lakh sq. ft., has 70 truck bays and can manage over 500 vehicles per day.
Industrial and logistics sector reports 11.4 million sq ft absorption Q3 2023
Tier-I cities witnessed 78% of the absorption, while tier II and III cities accounted for the remaining 22%. The absorption is being led by a surge in demand from the manufacturing and retail sectors, as well as continued sustained demand from the 3PL sector, according to the latest report by Savills India, an International real estate advisory firm.
Central Warehousing Corp to monetise assets across India, sees over Rs 1,500 cr investment
The plan involves development of these warehousing facilities across 80 key locations in the country through public-private partnership (PPP) under Design Build Finance Operate and Transfer (DBFOT) model for a period of 45 years to the concessionaire.
Indian warehousing records 23 million sq ft deals, rental growth in April-September
The demand for warehousing has shown resilience marked with growth in lease rentals for logistic spaces across top eight markets during the half year ended September. While occupier traction seems to have taken a pause in the current analysis period, rent growth across markets has been relatively healthy during the period since March.
Pan India warehousing demand outgrows supply by 1.4x in January-June, rents up 10%
The demand for warehousing in India has exceeded supply by 1.4 times during the first half of 2023, according to a study by CREDAI-CRE Matrix. The country's Grade-A Warehousing stock has reached 163 million sq ft, with 9.4 million sq ft added during this period. The Mumbai Metropolitan Region and NCR accounted for half of the new supply, while 54% of the demand came from organizations in MMR and Pune.
Morgan Stanley partners with Prakhhyat Group for warehousing project in Bhiwandi
MSREI has invested around Rs 350 crore to acquire majority equity stake in the project One K-Square will be developed in the Mumbai-based warehousing major’s existing facility K Square Logistics Park. In September 2021, it closed a $3.1 billion real estate fund and has been investing across assets from that pool. It has so far invested in over 5.6 million sq ft of logistics assets across India’s key warehousing hubs.
Kolkata fifth top city in warehousing and industrial space absorption in H1'2023
Kolkata witnessed strong demand for warehousing and industrial space in the first half of 2023, with net absorption of 1.3 million square feet, the fifth highest among the top eight cities in India, according to a report by JLL India. The report, "H1'2023 India: Logistics and Industrial State of the Nation", said that the cumulative Grade A and B supply in India's Warehousing and Industrial sector is expected to reach 516 million square feet by 2026 backed by strong international and domestic corporate investment intent and USD 1813 billion infra pipeline from 7532 projects.
Warehousing supply across 8 primary markets likely to grow 13-15% in FY24, says ICRA
The incremental absorption is estimated to remain at around 39 million sq ft, the level witnessed in 2022-23. Nearly 52% of the expected supply addition across these primary markets including Mumbai, National Capital Region, Pune, Chennai, Bengaluru, Kolkata, Hyderabad, and Ahmedabad will be in grade A category.
Warehousing demand at new peak led by manufacturing, third-party logistics, retail sector
The country’s top 8 markets have experienced a historic high in demand, reaching 51.3 million sq ft in 2022-23 and taking the compounded annual growth rate (CAGR) to 24% between 2016-17 and 2022-23, showed data from Knight Frank India. Notably, Mumbai, Bengaluru, and Kolkata witnessed a historically high volume of transactions in 2022-23.
From healing humans to mending supply chains: How a Naval doctor took a dive into the world of entrepreneurship
A twist of fate forced Ashvini Jakhar to leave the armed forces. But that did not put him down. He decided to give shape to a supply chain ecosystem that today caters to the needs of over 100 brands.
Warehousing and logistic sector to get a considerable boost from Budget
"We believe that the increase in Capex and resulting infrastructure development will also ease the development of warehousing and attract investment from the private sector, wishing to capitalise in this development," said Anshul Singhal, Managing Director, Welspun One Logistics Parks.
India warehousing market set to record highest ever net absorption in 2022
With rising disposable incomes and consumption-led demand, retail demand expanded strongly in the first half of 2022. Engineering and auto and ancillaries are the other main drivers of demand, since manufacturing companies have been incentivized with favourable government policies to attract multinational companies (MNCs) as well as domestic investments.
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