In a significant development in the Indian warehousing sector. IndoSpace has leased out 1.2 lakh square feet of prime warehouse space in Pune to Steelcase Asia Pacific Holdings. This agreement, with a monthly rent of ₹4.6 million, marks a crucial milestone in IndoSpace’s aggressive expansion strategy in the region. The deal, effective from January 29, 2025, reflects the growing demand for industrial and logistics spaces in Pune. A city that continues to be a key hub for manufacturing and distribution activities in India.
Lease Agreement: Terms and Conditions
The lease agreement outlines a rental rate of ₹36.37 per square foot, totaling ₹4.6 million per month. In addition, the agreement requires Steelcase to make a security deposit of ₹20.78 million. Which is equivalent to six months’ rent. Notably, this lease comes with an annual rent escalation of 5%. ensuring a steady increase in rental income for IndoSpace over the lease period. The lease will last for five years, during which Steelcase will utilize the space for its operations in the region.
This development comes as IndoSpace, India’s largest provider of industrial and logistics real estate. seeks to capitalize on the booming demand for warehousing space in Pune. The city, strategically located near Mumbai. Offers excellent connectivity and infrastructure, making it a preferred destination for businesses looking to expand their manufacturing and distribution networks.
IndoSpace’s Expansion Strategy in Pune
The investment is a clear indication of IndoSpace’s long-term commitment to the region and its plans to tap into the growing demand for warehousing space. As India’s e-commerce and manufacturing sectors continue to expand, the need for modern, efficient warehouses has skyrocketed. This strategic investments ensure that it remains at the forefront of this demand.
IndoSpace’s Vision for the Future
IndoSpace’s ambitiou plans are not limited to Pune alone. The company aims to double its industrial real estate and logistics parks portfolio. This growth is fueled by a investment IndoSpace’s portfolio reflects the broader growth in the Indian logistics. And supply chain sectors, which have seen massive investments in recent years.
Moreover, IndoSpace’s focus on acquiring warehousing is aligned with India’s increasing demand for efficient logistics infrastructure. As the government pushes for initiatives like “Make in India” and “Atmanirbhar Bharat.” The demand for high-quality industrial and logistics spaces will continue to rise. IndoSpace is to meet this demand through its state-of-the-art warehouses and logistics parks across key regions in India.
Conclusion: A Growing Market for Warehousing Space
The lease agreement between IndoSpace and Steelcase. Highlights the strong demand. for quality warehousing spaces in India’s. rapidly growing logistics and manufacturing sectors. With its strategic expansion plans in Pune and beyond. IndoSpace is well-position to lead the charge in the country’s industrial real estate market.
