Transindia Real Estate, part of the Allcargo Group, acquired 45 acres in Dankuni to build a major warehousing project. The company plans to invest ₹1,000 crore in this facility, which will be operational in 24 months. This project marks the firm's first entry into the eastern market to support logistics growth.
Ram Walase (right), CEO Transindia Real Estate, and Nishita Katriar, MD, Pratham Deal Mark, in Calcutta on Tuesday Sourced by the Telegraph
Transindia Real Estate, part of the Allcargo Group, has acquired around 45 acres of land in Dankuni near Calcutta to expand its warehousing and logistics infrastructure in eastern India.
The Dankuni project, its first investment in the city, could draw investments of around ₹1,000 crore. It will have 10-12 lakh square feet of warehousing capacity and will add to the company's combined operational warehousing capacity of around 60 lakh square feet across the country.
"We have acquired around 45 acres in Dankuni and the investment for land is around ₹100 crore. Another ₹400 crore could go towards developing basic infrastructure, while another ₹500 crore will be invested in internal warehouse infrastructure and handling equipment by the actual users," Ram Walase, CEO, real estate and Head, global procurement, Transindia Real Estate, said.
E-commerce, logistics and industrial users will be it's potential clients. The facility will be operational in the next 24 months. The company has so far expanded its presence across major markets, including Delhi-NCR, Hyderabad, Bengaluru, Chennai and Pune, with Calcutta marking its entry into the eastern market.
Walase said the company currently has a land bank of around 300 acres, which could support development of another 30-40 lakh square feet of warehousing facilities.
Walase said the company may consider launching its own real estate investment trust (REIT) in the future, as its portfolio expands. It has also hived off some of its real estate assets to a private equity fund in the past.
Local land developer Pratham Dealmark, which partnered Transindia Real Estate for the Dankuni land transaction, said it has around 1,000 acres of land in Dankuni, of which around 70 per cent is already occupied by various companies. The company plans to acquire another 2,000 acres in the area in phases.
"The development of a large-scale modern warehouse facility is expected to attract further business activity, strengthen the region's industrial ecosystem and create long-term opportunities for economic growth," said Nishita Katriar, managing director, Pratham Dealmark.