Morgan Stanley Arm Partners With Mumbai Realtor for Groundbreaking Warehousing Project 2023

Morgan Stanley Arm Partners With Mumbai Realtor for Groundbreaking Warehousing Project 2023

A 0.7 million square feet Class A warehouse project will be built in K Square Logistics Park in Bhiwandi near Mumbai by Morgan Stanley Real Estate Investing (MSREI), a division of Morgan Stanley, and Prakhhyat Group, an industrial and logistics real estate company with headquarters in Mumbai.

Despite MSREI withholding the investment amount, reports claim that the company is investing Rs 300 crore in Prakhyat to build up the warehouse area.

This is MSREI’s entry into Mumbai’s Bhiwandi submarket. According to the company, MSREI has now invested in logistics properties totaling more than 5.6 million square feet across the nation.

Despite primarily avoiding commercial and residential buildings in recent years, MSREI has been active in the warehouse sector.

For a total of Rs 455 crore, Morgan Stanley Real Estate Investing and the regional car supplier Waterloo Motors are selling their two locations in the western Maharashtra state, near Pune.

The 25 acres of land dedicated to the ‘One K-Square’ project with Prakhhyat will be developed to Grade A standards, according to the most recent worldwide technology. The project would provide institutional clients from the e-commerce, 3PL players, FMCG and FMCD sectors, among others, with storage solutions.P

The development manager, Prakhhyat Group, will be in charge of leasing, asset management, and project execution. 

We have a strong track record in the logistics industry thanks to our market experience. Sandeep Bagla, director of Prakhhyat Group, stated, “Through this agreement, we are excited to use our development skills along with MSREI’s strengths, as we establish this landmark development in India’s most sought-after logistics sub-market.

According to Anand Iyer, vice president of MSREI India, “Industrial and Logistics as an asset class is a high conviction theme across our investment strategy. We are proud to partner with Prakhhyat Group to develop a top-class warehousing park in one of the strongest logistics clusters in the country.”

With an investment of Rs 600 crore, MSREI partnered with Macrotech Developers in 2021 to build a high-end warehouse facility close to Mumbai. The same year, it sold two Indian warehouse buildings to the Singapore-listed REIT Mapletree Logistics Trust.

The Prakhhyat Group’s main venture, K Square Logistics Park, is spread out across 156 acres and has a total development footprint of over 4 million square feet. It is home to several local and foreign tenants working in a variety of industries.

Morgan Stanley Real Estate Investing (MSREI), a global leader in property investment, has announced a landmark partnership with a Mumbai-based real estate developer to embark on a cutting-edge warehousing project.

This move signifies the growing importance of logistics and warehousing real estate in India’s rapidly diversifying economy. It also marks a significant milestone for Morgan Stanley, which has been eyeing opportunities in India’s burgeoning real estate market.

The partnership is a joint venture between MSREI and the Mumbai realtor, a well-known name in India’s real estate landscape. The collaboration aims to capitalize on India’s burgeoning e-commerce industry, the expansion of manufacturing under the ‘Make in India’ initiative, and the growing demand for organized and efficient warehousing solutions.

The partnership aims to develop a state-of-the-art warehousing hub in a strategic location that will serve as a pivotal point for distribution and logistics.

The planned facility will cover a vast expanse, estimated to be over 5 million square feet, with the potential for future expansion. The warehousing hub will aim to provide multi-modal connectivity, including road, rail, and potentially sea and air.

The project will incorporate the latest in warehousing technology, including robotics, AI-driven inventory management systems, and advanced supply chain solutions. These technologies will help businesses streamline their operations, thus driving down costs and speeding up delivery times.

Sustainability is a cornerstone of the joint venture. The project will employ renewable energy sources, efficient waste management systems, and green building standards to minimize its environmental impact.

The facility will be designed in compliance with all applicable local, state, and national regulations, including safety standards, to ensure that it remains at the forefront of India’s industrial infrastructure.

The new warehousing hub is projected to create thousands of jobs and provide a significant boost to the local economy. It is also expected to attract further investment in the area, creating a multiplier effect that could spur economic growth in the region.

While the prospects are promising, challenges like land acquisition, infrastructural bottlenecks, and regulatory hurdles could pose as significant roadblocks. However, Morgan Stanley and its Mumbai-based partner are well-equipped to navigate these complexities.

The partnership between Morgan Stanley Real Estate Investing and the Mumbai-based real estate developer marks a significant milestone in India’s warehousing and logistics sector. If successful, the project could set the standard for future warehousing solutions in India and possibly, globally.

As the Indian economy continues to grow and evolve, partnerships like these will play a critical role in shaping the future of the country’s industrial landscape. By bringing together financial acumen and local expertise, this joint venture promises to create a ripple effect of positive economic, technological, and social change.