Knight Frank India Partners With Central Warehousing Corporation

BY Realty Plus

Knight Frank India, a leading international real estate consultancy, has been appointed as a Knowledge Partner to market land parcels of Central Warehousing Corporation, a Govt. of India understanding, in 54 prime locations across India. The cumulative potential land area for warehousing development across 54 locations is estimated to be almost 344 acres over a total land area of about 572 acres. The land acres will range from 5 acres to 30 acres. The development cost is estimated to be approximately INR 2,152 crores.

Under the National Monetisation plan, the Central Warehousing Corporation (CWC) is monetising and modernising the CWC warehouses throughout the country. As a part of this plan, CWC is monetising and modernising their warehouses through PPP mode under Design Build Finance Operate and Transfer (DBFOT) model for a period of 45 years to the Concessionaire.

Amit Kumar Singh, Managing Director, Central Warehousing Corporation, said, "Asset modernisation and monetisation which began with just 8 locations and a straightforward rental process has now evolved into a comprehensive initiative covering 54 land parcels, and may be more in the near future. Knight Frank India, our trusted knowledge partner, is advising us in the process of monetising and modernising warehouses through PPP mode. Our objective extends beyond modernisation and value creation; we are committed to supporting our nation's vision of reducing logistics costs. Modernised infrastructure and operational efficiency directly translate into cost savings for warehousing assets, which in turn would help the economy at large"

CWC has already pre-approved these warehousing sites for a considerable duration of 45 years, marking a long-term commitment to modernizing and operating these facilities. These sites are strategically located across the entire expanse of India, ensuring they are prime locations for potential logistics and distribution centers.

In terms of revenue sharing, the arrangement is structured to promote transparency and fairness. CWC retains a modest 5% share of the net revenue or the minimum guaranteed revenue share, whichever is higher, while the remaining 95% of the realized net revenue is directed to the concessionaire. This system encourages private entities to maximise their operational efficiency and revenue generation.

Gulam Zia, Senior Executive Director - Research, Advisory, Infrastructure, and Valuation, Knight Frank India, said, “Warehousing assets have become an attractive investment avenue for large developers across the country. The land parcels of CWC are available at strategic locations which provide effective price viability owing to its attribution to the asset class which otherwise available at a premium price value. The CWC land parcels unlocks a great opportunity for the developers to further expand their warehousing portfolio across geographies in the country”.

To participate in this remarkable opportunity, bidders must meet specific financial prerequisites. The net worth of the bidder must not be less than 50% of the cumulative Estimated Project Cost for all the sites they intend to bid on during the close of the previous financial year. This ensures that the bidders have the financial capacity to undertake and sustain the projects they are interested in.

Tags : Knight Frank India Gulam Zia Warehousing modernisation Amit Kumar Singh