The Amazon facility, which has been built by LOGOS, comprises a receiving centre, sorting centre, fulfillment centre and Amazon Retail in a single location, enabling the firm to enhance operational efficiencies
BENGALURU : Logistics operator LOGOS has leased a million square feet of space in its new warehouse facility to e-commerce major Amazon India, at the former’s Devanahalli Industrial and Logistics Park in north Bengaluru in one of the largest warehouse lease transactions in the country. The 20-year long lease tenure amounts to a rental outflow of over $100 million.
The Amazon facility, which has been built by LOGOS, comprises a receiving centre, sorting centre, fulfillment centre and Amazon Retail in a single location, enabling the firm to enhance operational efficiencies and service the growing demand in this region.
“We are pleased to have delivered a state-of-the-art warehouse facility for Amazon in record time despite the challenges faced because of the COVID-19 pandemic. This a testament to LOGOS’ development expertise and our partnership approach with both our customers and contractors as we work closely with them to understand their needs. For LOGOS, the timeframe was key in ensuring readiness for the festive season and the rebound in economic activity,” said Mehul Shah, CEO of LOGOS’ Indian business.
This is LOGOS’ first lease transaction with Amazon India.
Singapore-headquartered LOGOS has a 50% interest in the LOGOS Devanahalli Industrial and Logistics Park alongside Asset Property Group.
“The Indian warehousing sector has seen significant attraction from both global and domestic investors and occupiers on the back of the GST changes and significant growth in e-commerce. LOGOS is committed to establishing a new benchmark of high quality and sustainable logistics warehousing in India to support the critical infrastructure services needed for new economy businesses in India,” Shah said.
LOGOS has over 5 million sq ft of logistics assets operational and under construction space across National Capital Region (NCR), Bengaluru and Chennai. Its development pipeline comprises 12 million sq ft across NCR, Bangalore, Chennai, Pune, Kolkata and Mumbai.
An Amazon spokesperson declined to comment on the transaction.
The spokesperson said, ““Amazon India announced its plans to expand its fulfilment network in India, with close to 40% increase in its storage capacity over last year. Amazon India’s overall fulfilment network will be spread across a floor area of more than 10 million sq ft, more than the land size of 125 football fields, housing millions of products from a notebook to a dish washer.”
The launch of 11 new fulfilment centres and expansion of 9 existing ones across states such as Maharashtra, Bihar, Gujarat, Assam, Rajasthan, Punjab, Delhi, West Bengal, Uttar Pradesh, Telangana, Tamil Nadu, and Karnataka, is designed to deliver a smarter, faster, and more consistent experience for its customers and sellers across the country. All the sites will be operational before the festive season, the spokesperson added.
Trent Iliffe, MD and co-CEO of LOGOS said, “With operations in 10 countries across the Asia Pacific, LOGOS has a strong track record of supporting our customers growth both within country and across the region. We look forward to continuing to support Amazon in meeting in its significant growth requirements both within India and across the region.”
Source : https://www.livemint.com/companies/news/logos-leases-warehousing-centre-to-amazon-in-100-million-rental-deal-11631799801291.html