Realty firm Shriram Properties, a part of the Shriram Group, on Monday said it has entered into a memorandum of understanding (MoU) with logistics specialist Logos for a potential sale of up to 90 acres of land in Kolkata. Logos intends to develop the land at Shriram Grand City in Kolkata’s Uttarpara into a modern and sustainable logistics park offering around 2.2 million square feet of industrial and warehousing space.
The MoU for the proposed transaction was signed at the Bengal Global Business Summit (BGBS), organised by the West Bengal government last week, a release said, adding the transaction is subject to necessary due-diligence and certain regulatory and governmental approvals. The transaction is expected to be completed during the second half of this fiscal on satisfactory completion of necessary due-diligence and receipt of requisite approvals.
Shriram Properties (SPL), a leading residential real estate developer in South India, is currently developing an integrated township project, Shriram Grand City, on a 314 acres of land parcel owned it at Uttarpara. SPL is already developing 4.5 million square feet of residential apartments serving 5,500 families and is likely to hand over more than 500 homes during the first half of the current financial year.
The company intends to develop 10 million sq ft 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, according to a statement.
The logistics park, to be developed by Logos, is expected to generate 50,000 local direct and indirect jobs in West Bengal.
Commenting on the MoU, M Murali, chairman and MD, Shriram Properties, said Logos’ proposed investment in Shriram Grand City will transform the micro-market and allow SPL to realise superior value for both companies’ stakeholders.
Trent Iliffe, MD and Co-CEO of Logos, said Logos looks forward to working with SPL on this future transaction and entering West Bengal, the leading gateway to Eastern India, to bring best practices in ESG and high-quality logistics and infrastructure to this market. “Our foray into the East through Kolkata is in line with our strategy to focus on large scale development in key markets. We are excited to bring in benefits of multi-user and large-scale logistic infrastructure development with this proposed acquisition,” said Mehul Shah, CEO of Logos’ India business.
Logos, a leading Asia-Pacific logistics specialist that owns and develops warehousing and logistics parks across the region, has a presence in 10 countries with $19.6 billion of assets under management, across 119 properties. In India, the company has developed five million square feet of warehousing and logistic parks in NCR, Chennai and Bengaluru and is expanding its presence in this growing market.