In a major land deal in NCR, the Capital Markets division of leading independent real-estate advisory ANAROCK Group has successfully closed the sale of a 41-acre land parcel on the Ballabhgarh-Sohna Highway.
Pardos Logistics, a subsidiary of Pardos Real Estate (a development platform incubated by the DMI Group’s Alternative Investment Fund) will utilise this land parcel to develop 1 million sq ft of prime warehousing space. The prevailing land prices around the Ballabhgarh-Sohna Highway region range from Rs 1.4 to 1.5 crore/acre.
Akshay Uday, Sr Vice President, ANAROCK Capital says, “The land, which was acquired from a group of Delhi-based investors, will be developed over a period of 18 months with an investment corpus of approximately INR 200 crore. The land is ideally located, benefiting from proximity to critical road infrastructure like the Delhi-Vadodara Expressway, Eastern Peripheral Expressway, National Highway 8, and KMP Expressway.”
The Sohna-Ballabgarh market has gained prominence in the last two years since industrial and warehousing player ESR India acquired land there to establish a ~77-acre warehouse. Amazon has leased 900,000 sq ft in the ESR warehousing facility, and other key retailers like Tata Croma have also picked up space there.
“The warehousing & logistics sector has been one of the primary beneficiaries of the new post-pandemic market realities,” says Shobhit Agarwal, MD and CEO, ANAROCK Capital.
“With the rise in manufacturing activities across the country, demand for W&L assets has risen remarkably. The expanding economy and changing business models have also been instrumental in the sector’s growth.”
As per ANAROCK Research, the total pan-India Grade A warehousing stock as of 2021-end stood at approximately 140 million sq ft, growing at 16% CAGR between 2018-2021. Of this, NCR comprises a nearly 15-20% share. The pandemic has been a major demand booster as eCommerce has flourished ever since COVID-19 struck. There will be a steady increase in online businesses, leading to a surge in new warehousing demand. Likewise, multi-level warehouses within the city limits are in great demand.
Domestic as well as international private players have identified the tremendous growth potential of the Indian warehouse sector and are actively seeking to bridge the gap between cost and operational efficiency. Over 70% of the modern warehousing capacity in India is concentrated in the top eight cities of MMR, NCR, Bengaluru, Kolkata, Hyderabad, Chennai, Ahmedabad, and Pune.