Transindia Real Estate to sell logistics park in Haryana, divest stake in five others

February 29, 2024

Transindia Real Estate, the company formed as a result of the demerger of the logistics business of Allcargo Logistics, has signed a firm agreement to sell its logistics park at Jhajjar in Haryana at an enterprise value of approximately ₹636.71 crore.

The company has also sold 10 per cent stake in five other logistics parks – Malur Logistics & Industrial Parks, Venkatapura Logistics & Industrial Parks, Kalina Warehousing, Panvel Warehousing, and Allcargo Logistics & Industrial Park.

All the transactions together would yield ₹433.37 crore in cash that would be used for its growth plans and expand its operations across the country, the company said in a statement. The deal will also boost the company’s financial capabilities, paving the way for fresh investments in emerging business growth opportunities.

Transindia has developed and manages over 5 million square feet of industrial and logistics parks at Jawaharlal Nehru Port in Maharashtra, Farukh Nagar in Haryana, Malur in Karnataka, Patancheru in Telangana, Hosur in Tamil Nadu, and Verna in Goa catering to the micro-markets in Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, and Goa.

Grade A warehousing

It is currently building a Grade A warehousing space in Malur, Karnataka and exploring potential space in Tamil Nadu and Uttar Pradesh. The company is expanding its presence across key locations by setting up warehouses with built to global infrastructure, highest level of safety and security.

Its strategy of attracting marquee clients for its warehouses and seamlessly transitioning to asset sales would maximise returns while ensuring sustained growth, it said.

Allcargo Group’s chairman and founder Shashi Kiran Shetty said that the company would continue to drive logistics infrastructure development to “leverage the emerging opportunities with the construction of world class industrial and logistics parks.”

In 2023 the warehousing sector in India saw an annual absorption of 57 msf, while the total warehousing stock across the eight major cities were at 371 msf, according to JLL India. It has forecast total stock to rise to 595 msf by 2027, driven by rising demand for efficient logistics and supply chain solutions. 

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