An affiliate of ecommerce major Amazon has entered into an agreement with logistics development platform ESR to lease 606,000 sq ft warehousing space at India's biggest logistics cluster Bhiwandi in Mumbai Metropolitan Region (MMR).
The deal for the space at Warburg Pincus-backed ESR's upcoming logistics park is for a long-term tenure of 20 years, indicating the ecommerce player's commitment to grow the business further. The lease is expected to start in early 2022 with the agreement providing a clause for rental escalation of 15% every three years.
To begin with, the monthly lease rental is set at Rs. 29.2 per sq ft for box-closed spaces, taking the total annual rental to over Rs. 21.23 crore.
Prior to this, Amazon India had also entered into an agreement to lease over half a million sq ft warehousing space from the Xander Group's industrial real estate platform for a similar long-term tenure. The lease registered last month has been inked through Amazon's affiliate, Amazon Seller Services.
Amazon has paid around Rs. 8.55 crore as security deposit for the lease that has a five-year lock-in period. Amazon is likely to set up a fulfilment centre in this leased warehouse space.
ET's email queries to Amazon India and ESR remained unanswered until the time of going to press.
The demand for warehousing space has stood out in the last few quarters.
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