Mahindra Ltd. is a 3rd party logistics and integrated supply chain company. The company has leased more than 6,53,000 square ft. of warehousing space at Shakti Logistics Park in Bhiwandi near Mumbai for 5 years. The Mahindra Group will pay a rent of Rs.11.28cr in the 1st year. According to the agreement, the rent will be increased by 4.5 per cent every 12 months.
The company has leased more than 6,53,000 square ft. of warehousing space at Shakti Logistics Park in Bhiwandi near Mumbai for 5 years
The Mahindra company has already paid a security deposit equal to 3 months’ rent of over Rs.2.82cr to the Rkj Shakti Logistics Park Llp (property owner). Although the deal has already been registered, the effective month for the rent payment will be April as the agreement includes a rent-free period of 120 days starting from 1 December 2022. The deal was registered on 27 December and the agreement provides exclusive rights to Mahindra Logistics over a parking area of nearly 1,00,000 square ft., showing documents accessed through CRE Matrix. It is a real estate data analytics platform.
Over the last few years, Bhiwandi has emerged as the most prominent logistics and warehousing hub in the country and given its proximity to areas including Mumbai, Navi Mumbai, Thane, and the entire metropolitan region. Online retail companies including Flipkart, Amazon, and 3rd party logistics companies such as Blue Dart, DTDC, Safexpress, and DHL have built their warehouses in Bhiwandi.
The demand for warehousing space has increased over the last few quarters, led by the penetration of e-commerce and the growth of third-party logistics amid the pandemic
Last month, Welspun One Logistics Park, an integrated fund and development management firm, leased over 70,000 square ft. of standalone warehousing facility in Bhiwandi. Global logistics company AP Moller-Maersk’s subsidiary picked up a warehousing space of around 2,43,000 square ft. under a 5 yrs lease.
The demand for warehousing space has increased over the last few quarters, led by the penetration of e-commerce and the growth of third-party logistics amid the pandemic. A favourable regulatory backdrop along with the support of govt through policy and reforms is expected to boost infrastructure spending and in turn drive demand for modern warehouses.
About Mahindra Logistics Ltd.
Mahindra Logistics is an integrated logistics. It is one of India’s leading 3rd party logistics solutions providers with a presence across the country. It serves more than four hundred corporate clients in industries such as consumer goods, automotive, engineering, telecom, pharmaceuticals, e-commerce and commodities. Mahindra logistics manages more than 17 million square ft of warehousing space across the country. These include multi-user warehouses, dedicated, and a mix of built-to-suit that help in serving over twenty-one thousand pin codes across 500 locations.