Morgan Stanley to develop 7 lakh sq ft warehouse in Mumbai with Prakhhyat Group

An industrial and logistics real estate developer, Prakhhyat Group, and the global financial services giant Morgan Stanley have teamed up to create a 7 lakh sq ft warehouse project in Bhiwandi, close to Mumbai. One K-Square will be built in the Mumbai-based warehousing major's current facility, K Square Logistics Park, thanks to an investment of about Rs 350 crore by MSREI, which has acquired a majority equity position in the project. It closed a $3.1 billion real estate fund in September 2021, and since then, it has been investing in various assets. It has so far invested in more than 5.6 million square feet of logistics assets spread throughout India's major warehousing hubs.

“Industrial and Logistics as an asset class is a high-conviction theme across our investment strategy, and we are partnering with Prakhhyat Group to develop a

top-class warehousing park in one of the strongest logistics clusters in the country,” said Anand Iyer, Vice President, MSREI India. This alliance marks MSREI’s entry in the Bhiwandi sub-market of the Mumbai Metropolitan Region (MMR). “Our experience in this market has helped us establish a solid track record in the logistics space. Through this partnership, we will leverage our development expertise along with MSREI’s capabilities as we create this prime development in India’s most sought-after logistics sub-market,” said Sandeep Bagla, Director, Prakhhyat Group.

The project, One K-Square, will be built across 25 acres of land with state-of-the-art international Grade A specifications. The development will provide warehousing solutions to institutional customers from e-commerce, third-party logistics (3PL) players, fast-moving consumer goods (FMCG), and fast-moving consumer durables (FMCD) sectors, among others. K Square Logistics Park, Prakhhyat Group’s flagship development, is spread over 156 acres with a total development footprint spanning over 4 million sq ft and houses multiple domestic and international tenants across varied sectors. Currently, Prakhhyat Group has over 10 million sq ft of industrial and logistics projects under various stages of development. Construction of the project One K-Square will be Prakhyat’s responsibility and is expected to be fully operational by 2026.

Industrial and warehousing have emerged as a high-growth real estate asset class, buoyed by rising consumer demand and accelerating manufacturing investment. The National Logistics Policy, announced recently by the government, is expected to give a further boost to investments in the sector. The warehousing sector is expected to record the highest-ever absorption of space this year due to the aggressive expansion of e-commerce and the growth of third-party logistics (3PL) companies. Against this backdrop, several estimates show that around $13 billion in funding is required for the development of new warehousing capacity in India over the next decade. Given the market opportunity, a robust warehousing and logistics infrastructure that meets global standards can help attract investment in the country and enable more commerce in the region, driving competitiveness.