WAREHOUSE

A Brilliant Investment Avenue

 Warehouse - Data – Indian Context
• Warehousing Sector received $ 6.8 Bn since 2014 (Approx. 45000 Cr) –
Economic Times 19th June 2019
• Leasing of Warehouses jumps 31% in 1st Half of 2019 – Economic
Times 12th August 2019
• Demand for Warehousing outstrips Supply – Hindu Business Line 19th
June 2019
• Huge Scarcity of Quality Warehouses as per requirement of global
players
• Marquee Investment Funds like Wargburg Pincus, KKR, Blackstone,
Everstone set to invest $ 10 Bn into Warehousing in the next few years
• A JLL Survey shows that Warehousing sector will grow to USD 215 Bn
in India by 2020
 Warehouse - Basics
• 1 Acre – 44000 SqFt
• Total Area Available – 24000 SqFt
• Land Cost – 1 to 1.5 Cr per Acre
• Construction Cost – 1000 per SqFt

• Investment Opportunities
 Bhiwandi – Padgha, Amne, Shangrila
 NCR –Jhajjar, Bilaspur
 Ahmedabad – Changudar, Aslali
 Bangalore – Haskote, Nilmangla
 Hyderabad – Banglore Highway towards Hyderabad
 Kolkata – Ulberia, Amta
 Investment Options
• Warehouse Leasing

 Letter of Intent from Client

 Land Acquisition
 Construction
 Rental Income

• Warehouse Sale

 Deal with a Fund House / Client

 Land Acquisition
 Construction
 Outright Sale
 Investment Option 1 (Rental Income)
COST

• Warehouse Leasing (20 Acre Land)

• Available Space – 4.8 Lakh SqFt (24000*20)

• Land Cost – 30 Cr (20*1.5)

• Construction Cost – 48 Cr (4.8L*1000)
• Total Cost – 78 Cr

 Rent Realization (Current Rentals are between Rs. 18 to 20 per SqFt)

 Investment Option 1
Rental Income (Rs. 18 per SqFt)

• Calculations as per 18 per SqFt

• 1st Year – 10.37 Cr
• Total of 3 Years – 31.10 Cr
• Total of 4-6 Years – 35.76 (15% Appreciation)
• Total of 7-9 Years – 41.13 (15% Appreciation)
• Total Rental Income – 108 Cr (9 Years)
• Land Value – 120 Cr (4 times in 9 years)
 Investment Option 1
Total Income (Rs 18 per SqFt)

• Rental Income – 108 Cr

• Land – 120 Cr
• Maintenance Cost – 10 Cr

• Total Income – 218 Cr

NOTE – Returns will start after 3 years from the date of Investment.

• Appreciation over 12 Years – 179%

 Investment Option 1

Rental Income (Rs. 20 per SqFt)

• Calculations as per 20 per SqFt

• 1st Year – 11.52 Cr
• Total of 3 Years – 34.56 Cr
• Total of 4-6 Years – 39.74 (15% Appreciation)
• Total of 7-9 Years – 45.70 (15% Appreciation)
• Total Rental Income – 120 Cr (9 Years)
• Land Value – 120 Cr (4 times in 9 years)
 Investment Option 1

Total Income (Rs 20 per SqFt)

• Rental Income – 120 Cr

• Land – 120 Cr
• Maintenance Cost – 10 Cr

• Total Income – 230 Cr

NOTE – Returns will start after 3 years from the date of Investment.

• Appreciation over 12 Years – 195%

 Investment Option 2
• Total Cost – 78 Cr (30 Cr Land + 48 Cr Construction)
• Cost per SqFt – 1625
• Construct and sell it after 3 years
• Price Realization per SqFt – 2400 (As per ongoing rates)

• Total Appreciation in 3 years – 47.69%

• Note – Costs are considered on higher side

• Price realization is considered on lower side
CONTACT US

Sandeep Sharma
+91 9819444006

Anuj Shah
+91 9769373037

Pratik Shetty
+91 9769492221