The US-based e-commerce firm is also in talks with Blackstone Group’s logistics development platform, Horizon Industrial Parks, to lease half a million sq ft of warehouse space in Delhi and Alipore.
“Amazon is looking to set up a built-to-suit facility. The deal is expected to take at least two months. The proposed in-city warehouse will come up on a part of the 36 acres land bought by Blackstone in Delhi from TARC in a deal valued at Rs 295 crore,” said two people aware of the matter.
For Amazon, this is the fourth such large leasing deal that the US-based firm is in the process of finalising.
Since September last year, some of the large deals closed by the company include 6 lakh sq ft of warehouse space at India’s biggest logistics cluster, Bhiwandi in Mumbai Metropolitan Region, and another one million sq ft of warehouse space at the Shamshabad locality in South Hyderabad from ESR.
This was followed by an additional one million sft of warehouse facility at Devanahalli Industrial and Logistics Park, Bengaluru, from Logos.
“The firm has been very aggressive in the past four months and is looking to ramp up operations further. Amazon is also looking to sign some deals with city warehouses as demand for e-commerce continues to grow,” said a person quoted above.
Amazon and Blackstone did not respond to an email query sent by ET.
Amazon India announced its plans to expand its fulfilment network in India with a close to 40% increase in its storage capacity last year. With this expansion, Amazon.in will have more than 43 million cubic feet of storage capacity across 15 states supporting 8.5 million sellers across India.
According to Colliers, e-commerce companies leased 6.6 million sq ft of warehouse space in 2021, accounting for 29% of the total. The share was led by the large spaces that e-commerce companies typically take up for their fulfilment centres. The Grade A absorption across key cities stood at 22 million sft with e-commerce and 3PL sectors once again dominating the space uptake.
“We are witnessing industrial demand pick up across cities such as Chennai, Pune, and Delhi-NCR. We are also witnessing active leasing enquiries in emerging Tier II markets on account of the need for last mile delivery for customers,” said Shyam Arumugam, managing director, Industrial and Logistics Services, Colliers India.
Blackstone has emerged as the most aggressive institutional investor in India with overall assets under management estimated to be $60 billion across various sectors, making it one of the top 10 business groups in the country. Real estate accounts for nearly $20 billion of this market value across over 40 investments.
The firm has recently consolidated its warehousing portfolio under a holding company, Horizon Industrial Parks, to support its rapidly expanding logistics footprint across the country.
The US private equity major has created the platform through several recent key acquisitions, including Embassy Industrial Parks, TARC and Allcargo Logistics with over half a billion dollars in investments.
Currently, the platform has 35.5 million sq ft of logistics space under its portfolio and Greenbase Industrial and Logistics Park in association with Hiranandani.
The government’s decision to accord infrastructure status to the logistics industry is allowing developers access to low-cost funds for their development and is further expected to attract more institutional investors to this asset class.