Sumadhura Infracon acquires 100 acres in Bangalore outskirts for warehousing, industrial projects

Sumadhura Infracon has acquired 100 acres of land on the outskirts of Bangalore to develop warehousing and industrial projects, a move that will see the Bangalore-based builder foray into the warehousing segment with their maiden project on the Hoskote-Chintamani road.

"The project to be developed under the Sumadhura Urban Infrastructure will see 2.5 million square feet of development with a total investment of Rs 600 crore in the first phase," said G. Madhusudhan, CMD, Sumadhura Group.

The firm is in the process of acquiring 150 acres of land on Hoskote-Chintamani Road to expand the total development to 6 million square feet.

"In the first phase, most of the investment will be through internal accruals and construction finance. We are looking at building a rental yield portfolio and will also raise money through lease rental discounting," said Madhusudhan.

Industrial and warehousing demand across the top 5 cities remained strong during Q1 2023.

Industrial & Logistics (I&L) sector leasing grew by 26% Y-o-Y to 8.0 million sq. ft. in January–March 2023. Supply during this period increased by 28% Y-o-Y to 7.6 million sq. ft., mentioned CBRE.

"The year so far has seen demand for I&L spaces likely in 2023. Leasing activity ranges between 32 -35 million square feet, with an annual growth rate of about 1–5%. This pick-up in the take-up of industrial warehouse space pairs well with the growth in private consumption in the domestic economy. The influx of superior-quality warehouse spaces and robust demand from occupiers will push rentals upward and keep the overall market activity," said Abhishek Bhutani MD logistic and industrial services Cushman & Wakefield.

According to industry experts, the company’s quest to achieve operational efficiencies and rationalise costs in a multi-user facility is likely to spur the take-up of large-sized spaces

Additionally, a favourable regulatory environment and the government’s support through reforms and policies are expected to boost spending and demand for modern warehousing.