M A R K E T B E AT CHENNAI Industrial Q4 2019 Multimodal Logistics Parks gaining prominence Chennai continues to witness healthy demand traction in multi modal logistics parks, driven by automobile and manufacturing industries while HALF YEARLY GROWTH IN the supply side too is getting strengthened with prominent developers like Indospace, Ascendas Singbridge and Logos among others increasing 5% INDUSTRIAL RENT IN MANNUR their footprint in the city’s logistics and warehousing sector. With Chennai Port Trust planning to develop 120 acres of land near Sriperumbudur to build an MMLP or Maritime cluster, it will further help MMLPs emerge as attractive investment avenues. Going forward, MMLPs are expected Y-O-Y GROWTH IN CHENNAI 5% INDUSTRIAL RENT to become major nodes for production while servicing key consumption centres, enabling reduction in freight costs and enhancing incremental efficiency while curbing air pollution and traffic congestion on highways. SPACE LEASED BY 0.7 msf TPI COMPOSITES Manufacturing and warehousing demand in the South-West corridor drives rental growth Demand for warehousing and industrial segments continues to track at healthy levels, which has resulted in rents in these segments record a rise of 4% and 5% on a half yearly basis in the Sriperumbudur-Oragadam and Mannur corridors, respectively. Driven by manufacturing sector demand, the south-western submarket of Chennai acts as a key node for industrial development with large-scale investments from the private players. With TIDCO planning to develop an integrated aerospace and defence park across 250 acres in Sriperumbudur Industrial Park, a further ECONOMIC INDICATORS Q4 2019 boost shall be given to the industrial activity in the city. 2020 2018 2019 Forecast North Chennai remains a key warehousing hub Along with the south-western corridor, the warehousing cluster in the northern part of Chennai also witnessed healthy demand for warehousing GDP Growth 6.8% 5.0% 5.5% space from the e-commerce and logistics sectors. Net Meds, Amazon, Manddi.com, Kerry Logistics among others, taking up space in this part of the city, speaks about the sustained demand in this corridor, based on its seamless connectivity with the core city areas through NH16. CPI Growth 3.5% 7.3% 4.5% INDUSTRIAL RENT / Y-O-Y GROWTH WAREHOUSING RENT / Y-O-Y GROWTH Consumer 8.1% 5.5% 7.0% Spending 30 14% 30 18% 25 12% Govt. Final 25 16% 14% 10% Expenditure 9.2% 15.0% 14.0% 20 20 12% 8% Growth 10% 15 15 8% 6% 10 6% 10 Source: Oxford Economics 4% 4% 5 2% 5 2% 0 0% 0 0% INDUSTRIAL RENT (INR/SF/MONTH) INDUSTRIAL RENT Y-O-Y % GROWTH WAREHOUSING RENT (INR/SF/MONTH) WAREHOUSING RENT Y-O-Y % GROWTH M A R K E T B E AT CHENNAI Industrial Q4 2019 LAND RATES - DECEMBER 2019 INR US$ EURO Y-O-Y SUBMARKET MN/ACRE MN/ACRE MN/ACRE Change Ambattur 160 2.25 2.03 0% Poonamallee 100 1.40 1.27 0% Sriperumbudur – Oragadam 24 0.34 0.30 4% Irrungattukottai 25 0.35 0.32 9% Madhavaram 70 0.98 0.89 27% Gummidipoondi 13 0.18 0.16 0% Periyapalayam road 16 0.22 0.20 7% Manali 35 0.49 0.44 0% Mannur 13 0.18 0.16 0% Maraimalai Nagar 45 0.63 0.57 0% Percentage growth are in local currency; Y-O-Y – Year on Year Conversion Rate: US$1= INR 71.26 and Euro 1 = INR 78.92 * Historical land rates for certain submarkets have been revised . Rohan Sharma SIGNIFICANT LEASE TRANSACTIONS H2 2019 Director, Research Services +91 124 4695555 /[email protected] Lessee Lessor Type Submarket Area (sf) Kapil Kanala Yanmar Indospace Warehouse Oragadam 50,000 Associate Director, Research Services Sandhar Technologies Individual Industrial Ambattur 48,000 +91 40 40405555 /[email protected] Magna Automotive Individual Industrial Mahindra World City 76,000 cushmanwakefield.com Pantos Logistics NDR Warehouse Poochatipadu 250,000 A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION TPI Composites Cushman & Wakefield (NYSE: CWK) is a leading global Ascendas Industrial Oragadam 700,000 real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with KEY SALES TRANSACTIONS H2 2019 approximately 51,000 employees in 400 offices and 70 Buyer Seller Type Submarket Area countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project Indospace Multiple Landlord Land Mavalurkuppam 35 Acres management, leasing, capital markets, valuation and other services. NGC Transmission India Pvt. Ltd. Sri City Land Tada 10 Acres ©2020 Cushman & Wakefield. All rights reserved. The information Shell India Individual Land Chembarambakkam 0.5 Acres contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. Segoo Infra Mahindra World City Land Anjur Village Chengalpet 4.35 Acres.