Prakhhyat Group on Monday said it has partnered with a fund managed by Morgan Stanley Real Estate Investing to develop a warehousing project at Bhiwandi near Mumbai.
The company did not disclose the amount of investment by Morgan Stanley Real Estate Investing (MSREI) but sources said it is around Rs 300 crore.
Prakhyat Group will develop a 0.7 million square feet Grade A warehousing space at its K Square Logistics Park in Bhiwandi, the company said in a statement.
This marks MSREI's entry in the Bhiwandi sub-market of Mumbai. With this, MSREI has invested in over 5.6 million sq ft of logistics assets across the country, it added.
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The project, One K-Square, will be built across 25 acres. The development will offer warehousing solutions to institutional customers from e-commerce, 3PL players, FMCG and FMCD sectors, among others.
Prakhhyat Group will be the development manager and will be responsible for project execution, leasing, and asset management.
"Through this partnership, we are thrilled to leverage our development expertise, along with MSREI's capabilities, as we create this marquee development in India's most sought-after logistics sub-market," Prakhhyat Group Director Sandeep Bagla said.
MSREI India Vice President Anand Iyer said industrial and logistics as an asset class is a high conviction theme across its investment strategy.
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Prakhhyat Group's K Square Logistics Park is spread over 156 acres with a total development potential of over 4 million sq ft.
Prakhhyat Group is a leading industrial and logistics developer with over 10 million sq ft of projects under various stages of development.
MSREI is the global private real estate investment management arm of Morgan Stanley with over USD 54 billion of assets under management.
According to real estate consultant Vestian, the leasing of warehousing space in Mumbai rose 75 per cent to 3.8 million sq ft during January-June this year from 2.2 million sq ft in the corresponding period of the previous year.
"Indian warehousing and logistics sector is sailing through global headwinds on the back of strong and sustainable fundamentals. Several mega infrastructure projects are planned across the country to improve connectivity and reduce transit time," Vestian Chief Executive Officer Shrinivas Rao said.
