Bengaluru-based diversified real estate group Sumadhura Group plans to invest ₹2,000 crore over the next four to five years to develop 10 million sq ft of Grade A built-to-suit industrial and logistics parks across key southern markets, including Bengaluru, Chennai and Hyderabad.

“By 2030, we will optimistically reach 10 million sq ft (of Industrial Warehousing & Logistics Parks). Around 40-45% will be in Bengaluru and remaining between Chennai and Hyderabad,” Madhusudhan G, Chairman & Managing Director, Sumadhura Group, said.

The group on Tuesday entered Chennai with a ₹400-crore Grade A industrial and logistics park at Red Hills in North Chennai, marking its first warehousing expansion outside Bengaluru. Spread across 52 acres, the project will offer 1.2 million sq ft of warehousing space and is expected to be completed by December 2028.

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The Chennai facility will be built to suit the requirements of manufacturing, automotive, e-commerce and third-party logistics (3PL) companies, among other sectors.

A residential real estate major, Sumadhura currently operates the 2.5-million-sq-ft Sumadhura Logistics Park, a Grade A+ facility in Hoskote, Bengaluru, with marquee occupiers including Nippon Express (NX Logistics), Amazon, Zepto and Zomato. 

The ₹2,000-crore investment planned for the expansion, including land and construction costs, will be funded through a mix of equity, internal accruals, debt and rental income from warehousing. 

The group expects to fund around ₹1,000 crore internally, including rental income from its existing facilities and surplus from its residential business, while the remaining ₹1,000 crore will be raised through debt.

Sumadhura’s expansion into Chennai comes at a time when the city is emerging as one of India’s leading Grade A industrial and warehousing markets. Chennai recorded 4.1 million sq ft of Grade A absorption in the first half of 2026, the second-highest among the top eight cities, with demand growing 11% year-on-year.

Along with Delhi-NCR, Chennai accounted for more than 45% of Grade A industrial and warehousing leasing during the period, underscoring its growing prominence as a manufacturing and logistics hub.