Warehousing & Logistics

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Unprecedented surge in demand for India's Top 8 warehousing markets

India's top 8 warehousing markets have experienced a historic surge in demand during the financial year 2022-23, reaching a record high of 51.3 million square feet (msf), according to Knight Frank India's report. With a compound annual growth rate (CAGR) of 24% from FY17-23, Mumbai, Bengaluru, and Kolkata stood out with exceptionally high transaction volumes. The increased demand can be attributed to the Third-party logistics (3PL), manufacturing, and retail sectors. While the 3PL and manufacturing sectors witnessed significant year-on-year growth of 34% and 23% respectively, the e-commerce sector saw a decline due to excess capacity built during the pandemic....

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Hyderabad Amazon fulfilment Centre now acquired by Indospace Core

IndoSpace Core, India's leading logistics and industrial real estate vehicle, has successfully acquired the Amazon Fulfilment Centre located in Hyderabad, strengthening its nationwide presence. This marks IndoSpace's inaugural acquisition in the city, further solidifying its position in the market. The acquisition adds a substantial 0.8 million square feet to IndoSpace's portfolio, bringing their total advanced logistics and industrial infrastructure to an impressive 58 million square feet across 51 parks in India....

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NDR Warehousing declares successful acquisition of LSA Warehousing Pvt Ltd

NDR Warehousing, a prominent player in the warehousing industry, has successfully acquired LSA Warehousing Private Limited, enhancing its presence in one of India's major consumption markets. The acquisition encompasses a sprawling 18-acre project strategically located along the Sohna-Balabgarh Road, strengthening NDR's foothold in the NCR region. This development signifies NDR's fourth venture in the area, with a specific focus on the thriving micro market of Sohna. The company aims to complete Phase I of the project within 6 to 8 months and deliver the entire project within a year....

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Bengaluru's warehousing sector struggles to meet surging demand

Investment in premium warehousing parks is set to surge in Bengaluru to meet the rising demand for storage space from e-commerce and logistics companies, according to a white paper by India Sotheby's International Realty and CRE Matrix. Over the past five years, the demand for warehouse space has outpaced supply, leading to low vacancy rates and rental growth. Data from CRE Matrix reveals that Bengaluru absorbed 16.34 million square feet of warehousing space from 2018 to 2022, while new supply amounted to 10.5 million square feet....

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Stellar Value Chain Solutions expands warehousing capacity, aims for rapid growth

Stellar Value Chain Solutions, a prominent supply chain management company, has expanded its warehousing capacity by adding 1.5 million sq. ft. in Bhiwandi and 0.5 million sq. ft. in Banur. This move aims to support the company's pan-India supply chain operations for a consumer durable giant. Stellar has taken over Central Distribution Centre Operations and two regional Distribution Centres, increasing its total warehousing capacity to 16 million sq. ft. To facilitate further growth, Stellar is seeking primary capital funding, planning to roll out 5 million sq. ft. of warehousing operations annually and develop 10 million sq. ft. of logistics space through RFQs....

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LOGOS and Ivanhoe Cambridge acquire Pune land for Logistics Park

LOGOS, a prominent logistics real estate company in the Asia Pacific region, has joined forces with Ivanhoe Cambridge, its venture partner, to purchase a substantial 77-acre industrial land parcel located in Pune's Chakan industrial area. The objective behind this acquisition is to establish a sprawling logistics park within the region. The park's development aims to cater to the increasing demand for efficient and extensive logistics facilities in Pune, an industrial hub. This strategic move by LOGOS and Ivanhoe Cambridge highlights their commitment to expanding their presence in the logistics sector....

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Welspun One Logistics Parks Fund 2 achieves INR 500 CR initial closing

Welspun One Logistics Parks (WOLP) has raised INR 500 crores for its second Alternative Investment Fund (AIF), WOLP Fund 2, within just eight weeks. WOLP Fund 2, launched in March 2023, aims to gather a total corpus of INR 2,000 crores, including a green shoe option of INR 1,000 crores, to invest in projects worth over INR 6,000 crores. Welspun One's first fund, introduced in early 2021, has been fully committed across a portfolio of 6 projects, delivering impressive results....

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Q4 FY23 marks surge in industrial warehousing leasing by 3rd party logistic firms

A Colliers report reveals an 11% YoY surge in industrial warehousing leasing to 7.2 million sq ft across India's top five cities in Q4 FY23, largely driven by third-party logistics firms. Demand from retail and FMCG sectors also tripled YoY. Despite the demand surge, supply fell 8% YoY due to increased raw material and logistics costs. With vacancy rates dropping and rental prices rising, the sector shows resilience amidst challenges....

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Pragati Group raises USD 200 million for warehousing and logistics facilities in India

Pragati Group has raised $200 million in a funding round led by Singapore-based sovereign wealth fund GIC. The funds will be used to expand Pragati's warehousing portfolio across key markets in India, including Delhi-NCR, Mumbai, Pune, Chennai, and Bangalore. Pragati One & Pragati Farukhnagar Logistics Parks were purchased as part of the deal enabling the successful exit of the former financial partner Morgan Stanley. This fund also received an equity investment in Pragati as part of the agreement....

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Industrial & Warehousing demand up by 8% YoY in top 5 cities

In 2022, there was an 8% year-on-year increase in demand for industrial and warehousing space, totalling 24.5 million square feet across India's top 5 cities. The average quarterly leasing was strong, reaching 6.1 million square feet, up from 5.7 million square feet in 2021. Third-party logistics companies were the biggest occupiers of warehousing space, making up 44% of total demand in the sector. The growing consumer demand has led to more leasing by 3PLs, e-commerce, and retail companies. Meanwhile, there has been a rise in demand for space from engineering firms as well. Positive market sentiment is expected to continue....