Allcargo to lease out 3 million sqft warehouse to Flipkart, Decathlon
Allcargo Logistics’ warehousing arm has agreed to lease out a total of 3 million sqft of space to Walmart-owned Flipkart and sporting goods seller Decathlon, in what is being billed as the single-biggest land-lease deal in the country’s warehousing space by volume.
Under separate agreements with the two companies, Allcargo Logistics Industrial Parks will also invest close to Rs 450 crore to build facilities for these two clients and receive an annual rent of Rs 72 crore from them, chairmanShashiKiran Shetty said in an interview.
The company is also in talks to lease out an additional 3 million sqft of land by March 2019, he said.
The two deals will add Rs 120 crore to Allcargo’s annual revenue, Shetty said, adding that Allcargo’s total investment to make warehouses in the space will be about Rs 1,000 crore.