In a landmark development for the Indian logistics and renewable energy sectors, IndoSpace, the country’s leading developer of industrial and logistics real estate, has leased over 700,000 square feet of warehousing space to RenewSys India, a key player in the solar module manufacturing industry. This strategic agreement, executed in Khalapur near Mumbai, marks India’s biggest logistics transaction of the year 2025 and signals growing momentum in infrastructure investments by green energy companies.
As demand for efficient warehousing solutions continues to climb, IndoSpace’s large-scale transaction with RenewSys India sets a precedent for long-term, value-driven partnerships in the industrial real estate segment.
A Landmark Deal with Long-Term Vision
The transaction spans more than 10 years, establishing a solid foundation for both companies to expand their capabilities. The scale and tenure of the deal reflect RenewSys India’s forward-looking approach and IndoSpace’s confidence in catering to the logistics needs of India’s fast-growing green energy sector.
In addition, the deal includes a five-year lock-in period for IndoSpace and a full-term lock-in for RenewSys India, offering stability and commitment from both sides. By locking in the agreement, both parties have ensured long-term operational continuity and strategic alignment.
Financial Terms Highlight Confidence in Logistics Infrastructure
RenewSys India has agreed to pay an initial monthly rental of Rs 1.44 crore, signaling its strong financial commitment to the facility. After the first 36 months, the lease will witness a 15% escalation in rent, further increasing by 5% annually for the remaining duration of the agreement. These structured financial escalations underscore IndoSpace’s robust leasing model and RenewSys India’s expected long-term presence at the Khalapur site.
Such rental arrangements also reflect the rising value of Grade-A warehousing infrastructure in key industrial corridors near major cities like Mumbai.
Clear Timelines for Customization and Occupancy
The lease includes a well-planned project timeline that ensures operational readiness within defined stages. IndoSpace scheduled the fit-out handover for March 25, 2025, giving RenewSys a four-month window to customize the space according to its technical and operational requirements.
Following the customization period, the rent commencement will begin from November 25, 2025, after a three-month rent-free period. This phased approach allows RenewSys India to seamlessly set up its operations without financial burden during the transition phase.
Strategic Location Boosts Logistics and Manufacturing Synergies
The Khalapur facility offers strategic proximity to Mumbai and other key industrial hubs, which helps reduce transit time and logistics costs. With India’s infrastructure growth accelerating, locations like Khalapur have gained immense relevance for companies requiring rapid supply chain connectivity.
RenewSys India’s choice of this location further demonstrates the company’s intent to scale operations while maintaining a stronghold in western India’s solar manufacturing ecosystem.
Green Energy Sector Drives Warehousing Demand
As India aggressively pursues renewable energy targets, the solar industry continues to demand modern, compliant, and scalable logistics spaces. RenewSys India’s investment into a long-term warehousing solution reinforces this trend and highlights the growing convergence of clean energy and industrial infrastructure.
IndoSpace’s ability to offer tailored real estate solutions to high-growth sectors like renewable energy illustrates its role as a key enabler in India’s sustainable economic transformation.
Conclusion: A Win-Win for Industrial Real Estate and Renewable Energy
This landmark transaction not only strengthens IndoSpace’s leadership in India’s warehousing market but also empowers RenewSys India’s capacity expansion strategy. The deal showcases how long-term collaborations can drive mutual growth, while also supporting national priorities like green manufacturing and robust infrastructure development.
As industrial real estate becomes increasingly essential in supporting India’s economic ambitions, this deal sets a strong benchmark for future public-private and cross-sector partnerships.
