Logos to buy Shriram Properties 90 acre land in Kolkata for logistics park

Realty firm Shriram Properties Ltd on Monday said it plans to sell up to 90 acres of land in Kolkata to Logos for development of logistics and warehousing park.

According to a regulatory filing, Shriram Properties Ltd and LOGOS -- an Asia-Pacific logistic specialist-- have entered into a Memorandum of Understanding (MoU) for a potential sale of up to 90 acres of land in Shriram Grand City at Uttarpara, Kolkata, which will be developed into a warehousing and logistics park by LOGOS.

The MoU for the proposed transaction was signed at the Global Investor Summit organised by the West Bengal government in Kolkata, and is subject to necessary due-diligence and certain regulatory approvals.

Shriram Properties, a residential real estate developer in south India, is currently developing an integrated township project -- 'Shriram Grand City' -- on a 314-acre land parcel at Uttarpara in Kolkata.

The company is already developing 4.5 million square feet of residential apartments serving 5,500 families and plans to hand over 500-plus homes during first half of FY23.

Shriram Properties said it intends to develop 10 million square feet of saleable area for residential development and sell the remaining area to strategic partners for other formats of development. The proposed sale of land is integral to this strategy.

LOGOS, which owns and develops warehousing and logistics parks across the Asia-Pacific region, is present in 10 countries with USD 19.6 billion of assets under management across 119 properties.

In India, LOGOS has developed 5 million square feet of warehousing and logistic parks in NCR, Chennai and Bengaluru and are expanding its presence in this growing market.

"Following finalisation of the transaction, LOGOS intends to develop the land into a modern, sustainable logistics park offering approximately 2.2 million square feet of industrial and warehousing space. The park is expected to generate 50,000 of local direct and indirect jobs in West Bengal," the filing said.

The transaction is expected to be completed during the second half of FY23.

M Murali, Chairman and Managing Director of Shriram Properties, said: "LOGOS's proposed investment in Shriram Grand City will transform the micro market and allow us to realise superior value for both companies' stakeholders."

Shriram Properties Ltd has delivered 29 projects with saleable area of 17 million square feet, mostly in Bengaluru and Chennai. It has a strong development pipeline comprising of 51 projects with aggregate development potential of 51 million square feet as of March 31, 2022.