The land parcel has development potential of over 2.2 million sq ft.
The logistics venture of LOGOS India and Canadian institutional investor Ivanhoe Cambridge will acquire LOGOS Chakan Logistics Estate and invest Rs 650 crore in the project, said Trent Iliffe, managing director of LOGOS.
The LOGOS India-Ivanhoe Cambridge logistics venture has $800 million in investment capacity to develop and own high-quality, modern, industrial and logistics facilities in India’s key markets.
“The Chakan site is one of the largest industrial zoned lands in this area, capable of delivering a large-scale, prime-grade industrial and logistic estate,” said Iliffe. “With strong connectivity to key transport infrastructure, the estate will be able to support the increasing demand from e-vehicles, auto ancillary and electronics customers looking to build top-class industrial facilities.”
The site will be master planned with sustainability-driven development comprising Grade A industrial and logistics buildings. With direct access to the Mumbai-Pune Expressway and Mumbai-Bangalore NH 48, the site offers access to the Pune region from Mumbai’s port and other key infrastructure, making it a convenient location for warehousing for industrial, e-commerce and third-party logistics (3PL) customers.
“We are seeing strong demand from customers wanting to establish world-class, sustainable infrastructure in this area, and through this development, LOGOS will be able to meet the demand through a timely and efficient development programme,” said Mehul Shah, CEO, LOGOS India.According to Shah, the Pune acquisition is LOGOS’ fifth real estate deal in India, with developments also underway in Delhi, Chennai and Bengaluru. For the company, this is an important acquisition in building the portfolio of modern logistics properties in the country.
LOGOS is planning to commence work on the project in August and expects to develop the same in two phases over three years.
The land parcel is located in the MIDC Industrial and Logistics site within Chakan Industrial area, which is one of Asia’s largest industrial hubs that houses more than 1,000 manufacturing enterprises, including electronics, engineering, automobile and e-vehicles.
In line with LOGOS and Ivanhoe Cambridge’s commitment to sustainability, the project will incorporate market leading environmental initiatives, including a minimum of seven acres of Miyawaki forest plantation, solar power generation, ground water recharge, and distribution to warehouses and common infrastructure.
At present, LOGOS has a total four logistics parks with gross leasable area of 5.7 million sq ft across Bengaluru, Chennai and the National Capital Region (NCR). Of this, 4.8 million sq ft is already leased. The company has so far invested Rs 1,700 crore for development of these properties.
In India, favourable regulatory environment along with the government’s support through policies and reforms has started to boost spending in infrastructure and in turn, the overall demand for modern warehousing.
Sustained rise in demand led by accelerating manufacturing investments, aggressive expansion of e-commerce and the growth of 3PL companies after the Covid19 outbreak has pushed up warehousing rentals across India’s key logistics property markets, showed a recent study.
The appreciation in rental values has catapulted Indian cities, including Mumbai, Bengaluru and NCR into the tally of Asia Pacific’s top-10 logistics markets based on the performance in 2022 and robust outlook for 2023.