Property Share, a tech platform for commercial real estate investments, has launched its first India warehousing asset on its platform and plans to raise ₹192 crore from it.
The asset, a Grade A warehouse in Jaipur on Ajmer Road, is leased to Flipkart.
The asset comprises three boxes of 528,631 square feet of which box 1 (373,535 sf) is leased for nine years with a 5-year lock-in and box 2 & 3 (155,096 sf) have been signed for 9 years with a 6-year lock-ins. The rent escalates by 12.5 per cent every 3 years.
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The warehouse is a high-end, built-to-suit warehouse as per Flipkart’s requirements with state-of-the-art racking systems, turnstiles, an office, a training centre, a cafeteria, and closed-circuit cameras. It is Flipkart’s largest distribution and fulfilment centre in the western region processing 2 lakh orders per day.
Jaipur, the National Capital Region, and Surat account for over 40 per cent of e-commerce suppliers. Around 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 per cent of the total warehousing stock is Grade A in India, which has led many third-party logistics tenants to move to inferior stock due to a lack of supply. During 2023, Tier 2 & 3 cities together accounted for 63% of the e-commerce market share in India3.
Commenting on the opportunity, Property Share’s Co-Founder and CEO Kunal Moktan, said, “As ecommerce penetration rises in India from the current 5.5% closer to China, we believe there will be strong growth in the Grade A warehousing market. 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 like Amazon and Walmart- Flipkart.”
Property Share allows sophisticated investors access to institutional grade assets with 8-10 per cent in-place rental yields and 17-20 per cent returns. The platform assumes complete responsibility of sourcing, due diligence, property management and sale on behalf of users making owning, managing and exiting commercial real estate simple and transparent.