CapitalLand in talks to develop 3 million sq ft warehousing space near Gurugram

NEW DELHI: Singapore-based CapitalLand is in talks to develop 3 million square feet of warehousing space in Sohna, near Gurgaon, as investors rush to invest in a segment that’s growing at a fast clip despite the economic slump owing to increasing demand from e-commerce companies, said two persons aware of the matter.

The company is in discussions with Mayar Group, which owns a 100-acre land parcel in Sohna, they said. “It is going to be a joint venture where the foreign fund will develop and lease it. The expected investment will be around Rs 450 crore,” said one of the persons, who did not wish to be identified.

CapitalLand, one of Asia’s largest real estate groups, owns and manages a global portfolio worth about $134.7 billion and is looking to expand its presence in northern India.

“Of the 180-acre land we had in Sohna, about 80-acre has been sold to ESR, a venture of private equity firm Warburg Pincus and some global investors. For the remaining 100 acres, we are in talks with investors and expect the deal to close soon,” said AK Sud, chairman of Mayar Group, without comment on talks with CapitalLand.

The Singapore-based real estate investor did not respond to ET’s emailed query till press time on Tuesday.

CapitalLand’s real estate portfolio includes commercial, retail, business park, industrial and logistics integrated development.

Since the easing of the lockdown, Gurgaon has emerged as the preferred choice for warehouse developers. Areas such as Lohari and Bilaspur have seen development after a number of major players have acquired or built large warehousing spaces. The focus of warehouse developers has now shifted to the Sohna-Bahadurgarh road.

Warehouse and logistics park developer IndoSpace, the real estate arm of Everstone Group, is also in talks to acquire a 135-acre land parcel in Gurgaon for Rs 280 crore.

With its geographical advantage, Sohna is poised to become the largest distribution hub in the region.

Recently, the Haryana government allotted 180 acres of land near Gurgaon for Rs 550 crore to Amperex Technology Ltd, a manufacturer of rechargeable lithium ion polymer batteries.

The state is in the process of monetising more land for building warehousing and industrial hubs.

According to a Knight Frank India report, currently 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.