Shriram Properties Limited (“SPL”) and LOGOS, an Asia-Pacific logistic specialist, have entered into a Memorandum of Understanding (“MoU”) for a potential sale of up to 90 acres of land in Shriram Grand City at Uttarpara, Kolkata, which will be developed into a Warehousing and Logistics Park by LOGOS.
The MoU for the proposed transaction was signed at the Global Investor Summit organised by Govt. of West Bengal at Kolkata and is subject to necessary due-diligence and certain regulatory and governmental approvals that are customary to similar transactions.
SPL is a leading residential real estate developer in South India. SPL is currently developing an integrated township project, ‘Shriram Grand City’, on a 314 acres of land parcel owned at Uttarpara in Kolkata. Inaugurated by the Honourable Chief Minister of West Bengal in 2016, SPL is already developing 4.5 million sqft of residential apartments serving 5,500 families and is poised to hand over 500+ homes during H1-FY23.
The Company has maintained that it intends to develop 10 million sqft of saleable area for residential development and sell the remaining area to strategic partners for other formats of development. The proposed sale of land is integral to this strategy.
LOGOS is a leading Asia-Pacific logistics specialist that owns and develops warehousing and logistics parks across the region. LOGOS has a presence in 10 countries with USD 19.6 billion of assets under management, across 119 properties. In India, LOGOS has developed 5 million sqft of Warehousing and Logistic parks in NCR, Chennai and Bengaluru and are expanding their presence in this growing market.
Following finalisation of the transaction, LOGOS intends to develop the land into a modern, sustainable logistics Park offering approx. 2.2 million sqft of industrial and warehousing space. The Park is expected to generate 50,000 of local direct and indirect jobs in West Bengal. The transaction is expected to be completed during 2H-FY23 on satisfactory completion of necessary due-diligence and receipt of requisite approvals.
Commenting on the MoU, M Murali, Chairman and Managing Director of Shriram Properties Limited said: “We are extremely delighted to be working with LOGOS, a leading warehousing and logistics developer in Asia, on this potential transaction. LOGOS’s proposed investment in Shriram Grand City will transform the micro-market and allow us to realise superior value for both companies’ stakeholders”.
Commenting on the transaction, Trent Iliffe, Managing Director and Co-CEO of LOGOS said: “We look forward to working with SPL on this future transaction and entering West Bengal, the leading gateway to Eastern India, to bring best practices in ESG and high-quality logistics and infrastructure to this market.”
Mehul Shah, CEO of LOGOS’ India business added: “Our foray into the East through Kolkata is in line with our strategy to focus on large scale development in key markets. We are excited to bring in benefits of multi-user and large-scale logistic infrastructure development with this proposed acquisition.”
