Logistics real estate platform ESR has leased 9 lakh square feet of warehousing space to Amazon India at the e-tailer’s upcoming 74-acre facility in Sohna, Gurgaon, said two people with direct knowledge of the deal.
In January, ESR had acquired 76.84 acres to build a logistics park with 2.5 million sq ft of warehousing space.
“The facility will be ready by early next year and most of the pre- leasing has been done. ESR is also in talks with other e-commerce players to lease the remaining space,” said one of the persons, who did not wish to be identified.
ESR declined to comment on the deal. Warehouses in the National Capital Region (NCR) have witnessed 13.9% vacancy levels, compared to other markets such as Bengaluru and Pune which have vacancy levels of 29.7% and 21.8% respectively.
“At Amazon, we are committed to investing in India for the long term. Our vast and advanced infrastructure of nine fulfilment centres, with a storage capacity of 5.5 million cubic feet in the NCR region, helps offer a convenient and safe shopping experience to customers in the region and across the country,” said an Amazon India spokesperson, without commenting on the specific deal.
ESR had purchased the land from the Mayar Group. In 2019-20, 28% of the warehousing space was leased by e-commerce firms, followed by the manufacturing sector (24%).
Amid the Covid-19 push, the e-commerce sector is set to gain a larger share in consumption due to a shift in buying behavior, which is likely to accelerate demand for warehousing in the future. Walmart-owned Flipkart has acquired 140 acres of land in Manesar in Gurgaon to set up its largest fulfillment center in Asia in a transaction concluded after the easing of lockdown restrictions.
Gurgaon has emerged as the preferred choice for warehouse developers. According to a Knight Frank India report committed land for warehouses across the country is estimated at 21,163 acres, which has the potential of adding 63% more supply to the existing 307 million sq ft of warehousing stock.
0
