Mahindra Logistics soars 9% on warehouse facility deal with LOGOS

NEW DELHI: Shares of Mahindra Logistics climbed 9 per cent in early trade on Thursday as the third-party logistics company and Asia-Pacific logistics specialist LOGOS announced a long-term lease agreement for setting up 1.4 million square feet of warehouse facilities in the Delhi-National Capital Region.

The counter soared to a high of Rs 729 as against Rs 668.15 on the National Stock Exchange.

The transaction represents the country’s largest warehousing facility in a single park and according to the pact, LOGOS will set up 3 grade-A warehouses at its Luhari Logistics Estate.

The first such warehouse - 0.5 million square feet -was completed in mid-2021 and is fully operational while the other two are in stages of development with delivery likely later in December and early 2022.

“We will be delivering Mahindra Logistics’ three warehouses using lean construction, a process which involves using offsite precast, fabrication and preassembly for building and external development components. This, in conjunction with our strong local network and regional expertise, has enabled us to deliver the first facility within rigorous timelines, despite the challenges of the global pandemic,” Mehul Shah, CEO of LOGOS’ Indian business was quoted as saying in reports.

Mahindra Logistics is expected to pay rentals of $45 million for the space over the total tenure of 9 years, reports said, adding that both companies declined to comment on the tenure and rentals.

Mahindra Logistics will employ over 2,500 employees and third-party associates across these facilities.

LOGOS Luhari Logistics Estate is part of LOGOS India Logistics Venture, which has $800 million investment capacity to develop and own high-quality, modern logistics facilities in key logistics markets of India.