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BENGALURU: Logistics operator LOGOS has leased 1.4 million square feet of warehousing space to Mahindra Logistics Ltd, a third-party logistics (3PL) solution provider, at the LOGOS Luhari Logistics Estate in Haryana.
The nine-year long lease tenure amounts to a rental outflow of about $45 million.
LOGOS will develop three Grade-A warehouses totaling 1.4 million sq ft for Mahindra Logistics at its Luhari facility. The first 0.5 million sq ft warehouse was completed recently and is operational. The other two warehouses are currently under development, with delivery scheduled for late 2021 and 2022.
The new warehouses will be an important part of Mahindra Logistics’s pan-India network of multi-client facilities which manage fulfillment and distribution of its clients’ services in the e-commerce, consumer and engineering industries. Mahindra Logistics will employ over 2,500 employees and third-party associates across these facilities.
Property advisory CBRE South Asia Pvt. Ltd facilitated the lease transaction.
LOGOS Luhari Logistics Estate is part of LOGOS India Logistics Venture which has $800 million in investment capacity to develop and own high-quality, modern logistics facilities in key logistics markets of India.
“…We will be delivering MLL’s three warehouses using lean construction, a process which involves using offsite precast, fabrication and pre-assembly for building and external development components. This, in conjunction with our strong local network and regional expertise, has enabled us to deliver the first facility within rigorous timelines, despite the challenges of the global pandemic," said Mehul Shah, CEO, LOGOS India business.
LOGOS recently leased a million square feet of space in its new warehouse facility to e-commerce major Amazon India, at the former’s Devanahalli Industrial and Logistics Park in north Bengaluru. The 20-year long lease tenure amounts to a rental outflow of over $100 million.
Rampraveen Swaminathan, managing director and CEO, Mahindra Logistics, said, “Continuing our efforts in growing our warehousing business, we are delighted to announce the launch of Luhari Warehousing Facilities in partnership with LOGOS. Our focus remains on providing integrated, customized solutions for inbound and fulfillment and the warehousing network is a key element. We look forward to continued business growth from existing as well as potential customers from all regions."
“Warehouse space take-up is expected to cross 32 million sq ft in 2021, boosted significantly by accelerated digitaliwation, 3PL and e-commerce players, and improved sentiment in other sectors such as engineering/manufacturing, retail, FMCG, and pharmaceuticals," said Anshuman Magazine, chairman and CEO - India, South East Asia, Middle East & Africa, CBRE.
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