In a recent development, the Allcargo Logistics’ a warehousing company has agreed to lease 3 million sq. ft. space to Flipkart which is a Walmart owned company and to Decathlon who is famous for selling sports goods.
This is said to be the biggest single-land deal in the country while taking the warehouse space area into consideration.
Shashi Kiran Shetty, the Chairman of Allcargo Logistics Industrial Park said that we are closing the deal with these two companies under separate agreements. He also said that the company will also invest nearly Rs 450 crores to construct amenities for both Flipkart and Decathlon. Both the companies will pay a yearly rent of Rs. 72 crores to Allcargo Logistics for availing these facilities.
Apart from this, Allcargo is also planning to lease out 3-million sq.ft. space by March 2019 and is in talks with multiple companies for the same.
These two deals with Flipkart and Decathlon will help Allcargo to earn revenue of Rs. 120 crore annually and the company is also looking to invest this amount into constructing more warehouses in India. The estimated cost to be incurred for the construction of these warehouses will be around Rs. 1,000 crore.
The Allcargo Company has set the target to invest nearly Rs. 3,000 crore to develop 15 million sq.ft. of warehouses in the next four to five years. These warehouses will also have inland container deports and private freight terminals. Apart from these, the warehouses will also have build-to-suit warehouses.