Pardos Logistics, a subsidiary of Pardos Real Estate, has bought 41 acres of land in Haryana to develop 1 mn sq ft of warehousing space, Anarock Group said on March 29, as the e-commerce boom fuels demand for warehouses.
The deal was facilitated by the Capital Markets division of the Anarock Group, which didn’t reveal the cost of the parcel but said the going rate around the Ballabhgarh-Sohna Highway, where the land is, in the range of Rs 1.4 to 1.5 crore an acre.
Pardos Real Estate is a development platform incubated by the DMI Group’s Alternative Investment Fund.
"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,” said Akshay Uday, Sr Vice President- Anarock Capital.
The Sohna-Ballabgarh market has gained prominence in the last two years since industrial and warehousing player ESR India acquired land there to set up a 77-acre warehouse.
Amazon has leased 900,000 sq. ft. in the ESR warehousing facility, and other key retailers like Tata Croma have also picked up space there.
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,” said Shobhit Agarwal, MD & CEO, Anarock Capital.
With the rise in manufacturing activities across the country, demand for warehousing and logistics assets had risen remarkably, he said.
The expanding economy and changing business models, too, had been instrumental in the sector’s growth.
The COVID push
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.
The coronavirus pandemic gave a major boost to demand, as e-commerce flourished. There will be a steady increase in online businesses, leading to a surge in new warehousing demand. Multi-level warehouses within the city limits are in great demand as well.
Domestic as well as international private players see tremendous growth potential in the Indian warehousing sector and 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.