Indian multinational tyre manufacturing company MRF has secured the lease of 3.85 lakh sq ft of large warehousing space in village Sudvadi, Mawal area of Pune district. With an initial monthly rent of approximately Rs 1.05 crore, the Chennai-based company has inked a lease with NDR Tradehouse.
Transaction Details
The rental contract has a yearly escalation clause of 4.5% showing high demand for warehouse spaces in India’s growing logistics sector. According to documents from CRE Matrix, this deal was signed on 18 July for a first five-year period with an option to extend for another five years. A three-year lock-in time guarantees a minimum obligation from both sides. Also, MRF will pay Rs 3.85 lakh for common area upkeep and has given an advance security deposit of Rs 3.14 crore equal to three months’ rent. This gives NDR Tradehouse financial security.
Provision for Expansion
This lease agreement stands out because it lets MRF add 2 lakh square feet to its warehouse space within three years. MRF won’t have to stick to the lock-in clause if NDR Tradehouse can’t provide this extra space when required.
Growing Demand for Warehouse Leasing in India
The leasing of warehouse facilities has seen a noticeable upsurge in India in recent years. This is largely because of the increasing popularity of e-commerce, the implementation of Goods and Service Taxes (GST), and the growing need for effective supply chain management. Major cities and emerging industrial clusters have seen a rise in the leasing of warehouse space as companies seek to enhance distribution networks and streamline operations.
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