M A R K E T B E AT MUMBAI Industrial Q4 2019

Land rates continue to increase across select locations The land rates on a per acre basis, continued to grow in JNPT & Uran Road, Thane-Belapur Road and Rasayani-Patalganga sub-markets during the second half of 2019. On an annual basis, the land rates in Bhiwandi, Taloja and Panvel sub-markets have seen a growth of around 9.0% RISE IN WAREHOUSING RENTS (Y-O-Y) 22% each in 2019, driven by the sustained demand from warehousing and industrial space operators in these corridors. The Thane-Belapur Road sub-market also recorded a y-o-y growth of 18.8% in 2019, mainly due to rising demand for data centres from operators and developers alike, with the latter also scouting for lands for setting up IT parks in this region. With the commencement of work on the Navi Mumbai International Airport, warehousing space operators are scouting for prominent land 7.6% GROWTH IN INDUSTRIAL RENTS (Y-O-Y) parcels in the vicinity of the airport, which is also giving a push to land rates in the Panvel and JNPT & Uran Road sub-markets as well. We expect that land rates in these prominent warehousing and industrial corridors are likely to see a steady rise in the near term as well.

RISE IN LAND RATES IN BHIWANDI, 22% TALOJA & PANVEL (Y-O-Y) Bhiwandi leads in leasing of warehousing space in 2019 Bhiwandi remains the most prominent corridor in terms of warehouse leasing in H2 2019. Space take-up was driven by 3PL, E-commerce, FMCG, Retail and Pharma firms who constituted bulk of the major occupiers who took up space in the year. The major transactions witnessed during the second half of 2019 included Flipkart leasing 500,000 sf, Delhivery.com leasing total of 900,000 sf in two premises and Toll Logistics leasing 156,250 sf. This sustained demand momentum also pushed the average rents in Bhiwandi by 11% on a y-o-y basis. Taloja and Rasayani-Patalganga sub-markets saw faster rental growth, clocking an increase of 20% and 13%, respectively, on y-o-y basis, on the back of ECONOMIC INDICATORS Q4 2019 growing demand from manufacturing companies in these locations. Going forward, Bhiwandi will retain its preferred status for warehousing firms, along with Taloja and the JNPT-Uran region. We expect Panvel 2020 2018 2019 and surroundings to emerge as warehousing hotspots over the next 18-24 months, driven mainly by the upcoming Navi Mumbai Airport. Forecast

GDP Growth 6.8% 5.0% 5.5% Industrial demand remains muted during the year Industrial space leasing activity continued to remain stable across most locations during the year. Among notable transactions during H2 2019 KIA Motors leased 15,000 sf in Rabale (Thane-Belapur Road). The average industrial rents in Taloja Industrial Estate and Thane-Belapur Road CPI Growth 3.5% 7.3% 4.5% corridor rose by 13% & 11%, respectively on a y-o-y basis. Both these locations along with the Rasayani-Patalganga sub-market are expected to see most of the industrial leasing activity in near future. The peripheral sub-market of Dombivali-Ambernath belt is also likely to witness Consumer 8.1% 5.5% 7.0% some improvement in demand for industrial space in the coming quarters with increasing space queries from industrial occupiers. Spending INDUSTRIAL RENT / Y-O-Y GROWTH WAREHOUSING RENT / Y-O-Y GROWTH Govt. Final 40 25% Expenditure 9.2% 15.0% 14.0% 60 14% Growth 30 20% 50 12% 15% 10% 20 Source: Oxford Economics 40 10% 8% 30 10 5% 6% 0 0% 20 4% 10 2% 0 0% Bhiwandi Thane-Belapur Taloja Industrial Rasayani Pen Khopoli Road Estate Patalganga Road

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 MUMBAI Industrial Q4 2019

LAND RATES - DECEMBER 2019

SUBMARKET INR MN/ACRE US$ MN/ACRE EURO MN/ACRE Y-O-Y Change

Bhiwandi 25 0.4 0.3 22.1%

Thane-Belapur Road 95 1.3 1.2 18.8%

Taloja Industrial Estate 80 1.1 1.0 22.4%

Panvel (Palaspe Phata)# 55 0.8 0.7 22.2%

JNPT & Uran Road# 22 0.3 0.3 10.0%

Rasayani Patalganga 20 0.3 0.3 2.0%

Pen Khopoli Road 16 0.2 0.2 0.0%

Note: Quoted land rates for serviced industrial land parcels are mentioned # Represents government owned serviced plots in industrial parks Percentage growth are in local currency; Y-O-Y – Year on Year Conversion Rate: US$1= 71.26 INR and Euro 1 = INR 78.92 Rohan Sharma Director, Research Services +91 124 4695555 /[email protected] SIGNIFICANT LEASE TRANSACTIONS H2 2019 Lessee Lessor Type Submarket Area (sf) Kapil Kanala Flipkart Rennaisance Warehousing Bhiwandi 500,000 Associate Director, Research Services +91 40 40405555 /[email protected] Delhivery.com Acron Warehousing Bhiwandi 500,000

Delhivery.com Global Realty Warehousing Bhiwandi 400,000 cushmanwakefield.com

Toll Logistics Sonadevi Logistics Warehousing Bhiwandi 156,250 A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION KIA Motors Private Investor Industrial Rabale 15,000 Cushman & Wakefield (NYSE: CWK) is a leading global 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 approximately 51,000 employees in 400 offices and 70 KEY SALES TRANSACTIONS H2 2019 countries. In 2018, the firm had revenue of $8.2 billion Buyer Seller Type Submarket Area across core services of property, facilities and project management, leasing, capital markets, valuation and other Virtuous Retail Raymond Retail Thane 20.0 acre services.

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