Xander Group Inc., a Singapore-based alternative investment company, has acquired a 31-acre logistics park in Bagnan, located in West Bengal’s Howrah district, in its first warehousing investment in eastern India as regional demand grows, two people familiar with the development said.
At the 800,000 sq ft logistics park on NH-6 (Kolkata – Mumbai Highway), about 55 kilometres (km) from Kolkata, around 50% is leased to e-commerce major Flipkart while the balance area is under construction.
The park is being developed by Kolkata-based Jalan Builders. The investment is part of Xander’s $250 million industrial platform, which is advised by its private equity real estate arm Xander Investment Management.
Property consultant JLL was the transaction adviser to the deal. Xander and Jalan Builders didn’t respond to any queries.
“The acquisition is part of Xander’s plan to grow its footprint in east India, with Kolkata positioned as the gateway to the eastern and north-eastern consumption markets. The region is very attractive to e-commerce firms due to relatively low penetration of organized retail,” one of the two people cited above said on condition of anonymity.
Earlier this year, Xander leased around 1.1 million sq ft of warehousing space to e-commerce firms Amazon India and Walmart-owned Flipkart in Bhiwandi, Maharashtra.