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?

Anamika Sodhani answered.
4 weeks ago

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.