Amazon India has leased 154,000 square feet warehousing facility in Pune’s Khed for 20 years from industrial real estate and logistics parks developer IndoSpace, continuing its aggressive expansion of warehousing and logistics capabilities.
Amazon has leased the space through its subsidiary Amazon Transportation Services from Rohan Landspace, an affiliate entity of IndoSpace.
The ecommerce major will pay a rental of Rs 5.76 crore in the first year. As per the lease agreement, the rent will increase 5% every year for the first five years and thereafter by 15% every three years. Amazon India will also get a rent-free period of six months.
The ecommerce major will pay a rental of Rs 5.76 crore in the first year. As per the lease agreement, the rent will increase 5% every year for the first five years and thereafter by 15% every three years. Amazon India will also get a rent-free period of six months.
Total lease tenure of 20 years includes a lock-in period of first five years, documents accessed through real estate data analytics firm CRE Matrix showed.
Amazon Transportation Services has paid a security deposit of Rs 2.88 crore and an advanced rental of Rs 1.92 crore, which is equivalent to rental of four months.
“Maharashtra is an important state for us, and we continue to expand our infrastructure to support more than 100,000 sellers and create job opportunities for locals in the state,” Amazon India said in response to ET’s query.
Ecommerce players including Amazon have been ramping up their warehousing and logistics capability over the last two years amid a boom in home delivery business across the country, particularly after the Covid-19 outbreak.
In September last year, Amazon had picked up a 600,000-sq ft warehousing space in Mumbai Metropolitan Region’s Bhiwandi, India’s biggest logistics cluster. After that, it leased one million sq ft each in south Hyderabad’s Shamshabad from ESR and Bangalore’s Devanahalli Industrial and Logistics Park from Logos.
According to experts, the accelerated adoption of ecommerce, same-day or next-day delivery commitments fulfilled by third-party logistics companies, and the need to diversify supply chains are pushing demand for warehousing and logistics.
According to industry estimates, almost one-fourth of the total warehousing space in India has been leased by ecommerce firms such as Flipkart and Amazon in the past two years.
A favourable regulatory backdrop along with the government’s support through policy and reforms are further expected to boost the infrastructure spend and in turn the overall demand for modern warehousing.
Property consultant Knight Frank projects that annual warehousing transactions for top eight Indian cities as primary markets will grow at a compound annual growth rate (CAGR) of 19% to 76.2 million sq ft by 2025-26 from 31.7 million sq ft in FY21.
The industrial and logistics segment has become a key growth driver in real estate, and expansion of the online retail sector has resulted in greater demand for warehousing, resulting in higher investments in infrastructure and supply chain modernisation.
Source: Economic Times
