Ivanhoe, LOGOS buy additional 66 acre in Pune for logistics project

Ivanhoe Cambridge is the real estate arm of Canada pension fund CDPQ. The purchase follows Ivanhoe and LOGOS’ acquisition of 77 acre in Chakan in May 2023. The firms will together invest Rs 1,100 crore, including land cost and development, in the project.

The combined 143-acre site will provide the opportunity for development of over 3.5 million square feet of logistics space, according to the companies. The Chakan Industrial Estate represents LOGOS’ fifth project in the country, including in Bengaluru, Chennai, NCR and Pune, with a total potential development area of more than 10 million sq ft.

With 25 million sq ft of gross leasing in 2023, industrial and warehousing demand across the top five cities remained resilient, witnessing a marginal 2% annual growth. While H1 2023 was relatively subdued, leasing activity picked up in the second half of the year, with H2 2023 witnessing a 26% rise on a half-yearly basis, Colliers India said on Wednesday.

Across the top five cities, Bhiwandi micro market in Mumbai was the most active market followed by Chakan-Talegaon in Pune. The two micro markets together accounted for about 42% share in demand during the year.

LOGOS’ co-CEO Trent Iliffe said: “Our business model in India has seen us offer larger scale real estate solutions within one location, providing our customers with greater flexibility for future growth. Our Luhari Logistics Estate, which is a similar size to Chakan at 3.5 million sq ft, has attracted several of our customers looking for scale and the benefits that an estate can provide.”

LOGOS’ India CEO Mehul Shah said: “This acquisition demonstrates our long-term commitment and confidence in the Indian logistics and industrial sector, with high demand for holistic, modern and responsible AAA grade infrastructure helping India’s manufacturing growth and related demand for quality and sustainable development.