InvestorQ : Why is Prestige Estates investing so heavily in developing warehouses?
Lavanya Subramanian made post

Why is Prestige Estates investing so heavily in developing warehouses?

Answer
image
Anamika Sodhani answered.
10 months ago
Follow

Prestige Estates, one of the largest and most reputed real estate developers in Bengaluru and the Southern region, is betting big time on developing a portfolio of warehouses across India. To begin with, it has acquired multiple land parcels in around the city of Bengaluru and is looking to widen its footprint. Warehousing is a recent diversification for a company that is an established name in commercial, residential and shopping mall projects.

The idea of investing in a portfolio of warehouses was triggered by huge demand from ecommerce firms. Many of the ecommerce firms like Flipkart and Amazon do have a sophisticated online portal but they also need a strong brick and mortar back-up to managed fulfilment. It is currently developing warehousing facility in Malur, near Bengaluru, spread across 15 acres. The 2 buildings are leased to Flipkart and Dhoot Transmission.

PEPL confirmed that it had acquired land in multiple slots in Bengaluru with a view to build a meaningful warehousing portfolio. The opportunity is huge since most realty players are not investing heavily in A-grade warehouses. That would largely bridge the gap between the online trend and the brick and mortar support needs.

10 Views