The asset, a Grade A warehouse in Jaipur on Ajmer Street, is leased to Flipkart.
The asset contains three packing containers of 528,631 sq. ft of which field 1 (373,535 sf) is leased for 9 years with a 5-year lock-in and field 2 & 3 (155,096 sf) have been signed for 9 years with a 6-year lock-ins. The lease escalates by 12.5 per cent each 3 years.
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The warehouse is a high-end, built-to-suit warehouse as per Flipkart’s necessities with state-of-the-art racking programs, turnstiles, an workplace, a coaching centre, a cafeteria, and closed-circuit cameras. It’s Flipkart’s largest distribution and fulfilment centre within the western area processing 2 lakh orders per day.
Jaipur, the Nationwide Capital Area, and Surat account for over 40 per cent of e-commerce suppliers. Round 7 in 10 internet buyers reside in Tier 2 cities which is driving demand for Grade A warehousing property in cities like Jaipur, Lucknow, Kolkata, Nagpur and Ludhiana. Solely 40 per cent of the full warehousing inventory is Grade A in India, which has led many third-party logistics tenants to maneuver to inferior inventory resulting from an absence of provide. Throughout 2023, Tier 2 & 3 cities collectively accounted for 63% of the e-commerce market share in India3.
Commenting on the chance, Property Share’s Co-Founder and CEO Kunal Moktan, stated, “As ecommerce penetration rises in India from the present 5.5% nearer to China, we imagine there will likely be robust development within the Grade A warehousing market. The business is more likely to witness excessive development each by way of lease and capital values as high quality and demand are pushed by worldwide gamers like Amazon and Walmart- Flipkart.”
Property Share permits refined traders entry to institutional grade property with 8-10 per cent in-place rental yields and 17-20 per cent returns. The platform assumes full accountability of sourcing, due diligence, property administration and sale on behalf of customers making proudly owning, managing and exiting business actual property easy and clear.
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