Allcargo Terminals has said that it has executed lease agreement for a 22-acre land parcel at Village Khopta in Maharashtra to expand its container handling and warehouse related operations in Jawaharlal Nehru port.
In an exchange filing, the company said that it has executed the lease agreement with Pankaj Sheth and Asha Sheth for a period of 30 years commencing from the lease commencement date of April 2, 2025.
Allcargo Terminals stated that it has leased the land parcel to expand its container handling, warehousing, and related operations, in JNPT.
As per the terms of the agreement, Allcargo Terminals will have to pay a lease rent of Rs 87.12 lakh, subject to escalation at the rate of 15 per cent on the last paid lease rent after every three years commencing from the lease commencement date.
Demand for warehousing rising
According to a report by JLL, in India and Miebach Consulting, India, the demand for warehouse space is projected to reach approximately 1.2 billion sqft by 2027 across Grade A, B & C warehouses across all cities as supply chains continue to evolve.
As per industry estimates, warehousing contributes to approximately 30 per cent of the total logistics expenditure in the third-party logistics (3PL) space, making it one of the most significant cost centers.
However, the sector faces mounting cost pressures. Urban areas, particularly Tier 1 cities, are experiencing an acute shortage of warehousing space. The lack of availability has driven rents to record levels, with annual lease escalations ranging between 5–8 per cent in some logistics hubs. Even in the outskirts, where large-scale logistics parks are emerging, rental prices have surged by 10–15 per cent in the last couple of years.