Allcargo to lease warehouse to Decathlon, Flipkart
In the largest scale land lease deal in India’s warehousing history, Allcargo has agreed to lease a three million square foot large warehouse to Flipkart and Decathlon in two separate deals.
Allcargo Logistics’ warehousing division has made two separate agreements, one with Flipkart and one with the sportswear brand Decathlon. The business will rent out a combined total of 3 million square feet of warehouse space to the two businesses and collect a total of Rs 72 crore ($10.8 million) in annual rent. This will be the largest volume of retail space let out by a land lease deal in India.
The business will also invest around Rs 450 crore to build warehouse facilities for Flipkart and Decathlon, Allcargo’s chairman Shashi Kiran Shetty told the Economic Times in an interview. On top of this deal, Shetty also mentioned that the business is negotiating leasing out a further 3 million square feet of land by March this year.
The deal with Flipkart and Decathlon will add an extra Rs 120 to Allcargo’s annual revenue and bring its total investment in the sector to around Rs 1,000 crore. The business aims to invest Rs 3,000 crore in the sector in the coming four to five years and create 15 million square feet of warehousing space including warehouses, inland container depots, and private freight terminals.
Copyright © 2022 FashionNetwork.com All rights reserved.