Warehousing developer LOGOS has inked a pact with real estate firm Shriram Properties Ltd to buy up to 90 acres of land in the ‘Shriram Grand City’ township project near Kolkata’s Uttarpara, for a logistics park.
LOGOS will invest around $100 million in the project, including land and development costs, and plans to build 2.2 million sq ft of industrial and warehousing space. This will also be its first project in West Bengal.
The transaction is expected to be completed in the second half of 2022-23 on completion of due diligence and regulatory approvals.
Bengaluru-based Shriram Properties is currently developing an integrated township project, ‘Shriram Grand City’, on 314 acres it owns at Uttarpara.
Around 4.5 million sq ft of residential apartments for 5,500 families is under development, of which over 500 homes will be handed over later this year.
The developer has earlier said it 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.
“Our foray into eastern India 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.
In India, LOGOS has developed 5 million sq ft of warehousing and logistic parks in National Capital Region (NCR), Chennai and Bengaluru.
M Murali, chairman and MD of Shriram Properties said, “LOGOS’ proposed investment in Shriram Grand City will transform the micro-market and allow us to realize superior value for both companies’ stakeholders.”
The memorandum of understanding between LOGOS and Shriram Properties was signed at the Global Investor Summit organized by the West Bengal government in Kolkata. The transaction is subject to due diligence and regulatory approvals.