Logos leases space at MLL

BENGALURU:Logistics operator LOGOS has leased 1.4 million sq ft of warehouse space to third-party logistics provider (3PL) Mahindra Logistics Ltd at LOGOS Luhari Logistics Estate in Haryana.

The nine-year lease term represents an outflow of approximately $45 million in rent costs.

LOGOS will construct three Class A warehouses with a total area of ​​1.4 million sq ft for Mahindra Logistics at its Luhari facility. The first warehouse with an area of ​​0.5 million sq ft was recently completed and is operational. The remaining two warehouses are currently under construction and are scheduled for delivery by the end of 2021 and 2022.

The new warehouses will be an important part of Mahindra Logistics’ pan-India network of multi-client facilities that manage the fulfillment and distribution of services for clients in the e-commerce, consumer and engineering industries. Mahindra Logistics will employ over 2,500 employees and external associates at these facilities.

The consulting firm CBRE South Asia Pvt. Ltd. was responsible for concluding the lease agreement.

LOGOS Luhari Logistics Estate is part of LOGOS India Logistics Venture, which has an investment potential of USD 800 million to develop and own high-quality, modern logistics facilities in key logistics markets in India.

“…We will be delivering the three MLL warehouses using lean construction, a process that involves the use of off-site prefabrication, prefabrication and pre-assembly for construction and off-site development components. This, coupled with our strong local network and regional expertise, enabled us to deliver the first facility within a stringent time frame, despite the challenges posed by the global pandemic,” said Mehul Shah, CEO, LOGOS India.

LOGOS recently leased a million square feet of space in its new warehouse facility to e-commerce giant Amazon India at its Devanahalli Industrial and Logistics Park in north Bengaluru. The 20-year lease period means a rent outflow of more than $100 million.

Rampraveen Swaminathan, Managing Director and CEO, Mahindra Logistics, said, “Continuing our efforts in growing our warehousing business, we are pleased to announce the launch of Luhari Warehousing Facilities in partnership with LOGOS. Our focus remains on delivering integrated, tailored solutions for inbound and fulfillment, and our warehousing network is a key component. We expect continued growth in business from existing and potential customers across geographies.”

“In 2021, warehouse leasing is expected to cross 32 million sq ft, which will be significantly boosted by accelerating digitalisation, 3PL and e-commerce players, and improving sentiment in other sectors such as engineering/manufacturing, retail, FMCG and pharmaceuticals,” Anshuman Magazine, president and CEO, India, Southeast Asia, Middle East and Africa, CBRE, told Reuters.