Property Share, a commercial real estate investment platform, has launched its first India warehousing asset on its platform, which is a 9.1 percent yielding Grade A warehouse in Jaipur tenanted to Flipkart, totalling Rs 191 crores, the company said.
The warehouse asset comprises three boxes totalling 5,28,631 square foot, of which box 1 (373,535 square foot) is leased for nine years with a five-year lock-in and box 2 and 3 (155,096 square foot) have been signed for nine years with a six-year lock-in.
The warehouse is located on Ajmer Road, off the NH48 in Jaipur. The warehouse is Flipkart’s largest distribution cum fulfilment centre in the West, the company said.
According to Property Share, Jaipur, Delhi NCR and Surat account for over 40 percent of e-commerce suppliers. During 2023, tier 2 and tier 3 cities together accounted for 63 percent of the e-commerce market share in India.
Kunal Moktan, Co-Founder and CEO, Property Share said that seven in 10 online shoppers reside in Tier 2 cities which is driving demand of Grade A warehousing assets in cities like Jaipur, Lucknow, Kolkata, Nagpur and Ludhiana.
Only 40 percent of the total warehousing stock is Grade A in India, which has led many logistics tenants to move to Grade B stock due to a lack of supply. The primary difference between Grade A and Grade B warehouses lies in the quality of construction, facilities, automation and overall specifications, with Grade A being superior in terms of modern amenities and structural standards.
“Tier 2 cities are some of the largest consumers of e-commerce platforms today but are significantly underserved in terms of Grade A warehousing stock. As e-commerce penetration rises in India, we believe there will be strong growth in the Grade A warehousing market. As a platform, we see this as an opportunistic and tactical way to play the warehousing and infrastructure growth story that India is witnessing and we will look to continue to add similar assets to our portfolio,” Moktan said.
Property Share was established in 2016, which is technology driven commercial real estate investment platform that allows investors access to institutional grade assets.