Prestige Estates Looks to Develop Space for Warehousing and Logistics Sector

Realty firm Prestige Estates Projects on Monday today said the company is looking to enter into space development for the warehousing and logistics sector. With the e-commerce growth in India, the demand for space for warehousing and logistics has risen significantly.

In a filing to BSE, the Bengaluru-based Prestige Estates said: "...as part of the strategy, we are currently looking at construction/developing space either to rent/sell for the warehousing and logistics sector."

Prestige Estates is already into the development of housing and commercial projects comprising office complexes, shopping malls and business parks. "The company is engaged in the business of construction

and development of real estate. As part of its business model, in addition to construction and development of business parks, office spaces and shopping malls, the company also explores, from time to time, avenues to develop and sell/lease commercial spaces to suit business requirements of various sectors/organisations," it said.

According to property consultant CBRE India, around 6 million sq ft space was taken up by warehousing space occupiers in the first six months of 2015, a growth of nearly 60 per cent from the year-ago period. The main demand drivers were third party logistics, e-commerce and fast-moving consumer goods.

In July, Prestige Estates Projects raised Rs 500 crore through issue of non-convertible debentures and the fund would be utilised to retire high cost debt, expansion and acquisition.