Morgan Stanley, Prakhhyat Group to develop warehouse in Mumbai

The state-of-the-art project, branded One K-Square, will be built across 25 acres to international specifications.

A Morgan Stanley unit and the Prakhhyat Group, a Mumbai-based industrial and logistics developer, have tied up to develop a warehousing project near Mumbai.

The group and a fund managed by Morgan Stanley Real Estate Investing (MSREI) will develop the 700,000 square foot project at K Square Logistics Park in Bhiwandi near Mumbai.

This marks MSREI’s entry in the Bhiwandi sub-market of Mumbai. With this, MSREI, the global private real estate investment management arm of Morgan Stanley, has now invested in over 5.6 million square feet of logistics assets in India, MSREI said in a statement.

The partners will invest about Rs 300 crore in the project, according to people familiar with the plans.

The state-of-the-art project, branded One K-Square, will be built across 25 acres to international specifications. It will offer warehousing solutions to institutional customers from the e-commerce, third party logistics, consumer goods and consumer durables sectors, among others, it said.

The Prakhhyat Group will be the development manager and will be responsible for project execution, leasing, and asset management.

“We are thrilled to leverage our development expertise, along with MSREI’s capabilities, as we create this marquee development in India’s most sought-after logistics sub-market,” said Sandeep Bagla, a director of the Prakhhyat Group.

“Industrial and logistics as an asset class is a high-conviction theme across our investment strategy,” said Anand Iyer, vice president at MSREI India.

K Square Logistics Park, the Prakhhyat Group’s flagship development, is spread over 156 acres and houses domestic and international tenants across sectors. The group is developing over 10 million square feet of projects. MSREI has over $54 billion of assets under management.