Avigna Space, the industrial and warehousing arm of the diversified Avigna Group, plans to develop about 50 million sq ft of warehouse space over the next five years as it plans to expand its footprints in the western, eastern and northern parts of the country in the coming years.
The warehouse expansion is part of its over Rs 2,500 crore investment plan. “This is the most stable rental asset and we are planning to expand aggressively, backed by demand from manufacturing and industrial clients,” Avigna Group executive director Abhijit Verma said.
Avingna Space has bought 2 million sq ft of space in Vijayawada and Kochi and is currently in the process of acquiring land at Durgapur (West Bengal), Bhiwandi (Mumbai) and Lohari (Delhi).
“We already have 10 million sq ft of expression of interest from clients looking for warehousing space and are in the process of acquiring 60-100 acres of land across these cities,” said Verma.
The Bengaluru-based firm currently has around 10 million sq ft of warehousing facilities in various stages of development in Chennai, Hosur in Tamil Nadu, Hoskote in Bengaluru and the Nellore district of Andhra Pradesh.
Avigna Spaces has leased more than 2.3 million sq ft in the last two years to companies like Stellar, which caters to firms like Amazon, Flipkart and Wakefit.
Built-up space transactions in warehousing totalled more than 18 million sq ft in the last two years, led by demand from industrial, manufacturing, third-party logistics and ecommerce players. The segment also attracted more than $1 billion investment in 2021.
The warehousing and logistics sector is further expected to gain with a favourable regulatory environment, along with the government’s support through policy and reforms leading to higher spending in infrastructure and in turn demand for modern warehousing.
Transactions in the warehousing segment are estimated to grow at a compounded annual growth rate of 20% to 45.9 million sq ft in 2022-23 from 31.7 million sq ft in 2020–21, according to data from JLL
