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Property Share, India’s first and largest tech platform for commercial real estate investments has launched its first India warehousing asset on the platform - a 9.1% yielding Grade A+ warehouse in Jaipur rented to Flipkart, India’s largest e-commerce player totalling INR 191 crores.
The warehouse asset comprises 3 boxes totalling 528,631 sq. ft. of which box 1 (373,535 sq. ft.) is leased for 9 years with a 5-year lock-in and box 2 & 3 (155,096 sq. ft.) have been signed for 9 years with a 6-year lock-in. The rent escalates by 12.5% every 3 years.
The warehouse is a high-end Grade A+ development built-to-suit as per Flipkart’s requirements including state-of-the-art racking systems, turnstiles, office, training centre, cafeteria and CCTV systems. It is Flipkart's largest distribution-cum-fulfilment centre in the West, processing 2 lakh orders per day (5 lakhs during Big Billion Days).
Property Share was established in 2016. It is a technology driven commercial real estate investment platform that allows investors access to institutional grade assets.
The asset is located on Ajmer Road, just off the main NH48, around 45 mins from the Jaipur Airport and close to Mahindra World City, the largest and most well-established warehousing location in Jaipur with tenants like Amazon, Coca Cola, Hindustan Unilever, Delhivery, Havells, ECom Express among others.
According to Property Share, Jaipur, Delhi NCR and Surat account for over 40% of e-commerce suppliers. During 2023, tier 2 and tier 3 cities together accounted for 63% of the e-commerce market share in India.
Kunal Moktan, Co-Founder and CEO, Property Share said that 7 in 10 online shoppers reside in Tier 2 cities which is driving demand for Grade A warehousing assets in cities like Jaipur, Lucknow, Kolkata, Nagpur and Ludhiana.
Only 40% of the total warehousing stock is Grade A in India, which has led many logistics tenants to move to Grade B stock due to a lack of supply. The primary difference between Grade A and Grade B warehouses lies in the quality of construction, facilities, automation and overall specifications, with Grade A being superior in terms of modern amenities and structural standards.
Moktan said that the warehousing market in India these days is similar to the office market in the early 2000s both in terms of demand and quality. The industry is likely to witness high growth both in terms of rent and capital values as quality and demand are driven by international players.
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