Adani Logistics Limited has sub‑leased a large warehousing facility in Panvel, near Mumbai, to Avenue Supermarts Limited, the company that runs the DMart retail chain. The agreement, signed on 24 December, covers 66,250 square feet of warehouse space in Raigad district’s Dharna Camp and runs for 28 years.
Adani Logistics Panvel lease strengthens retail supply chain
Under the terms of the sub‑lease, Avenue Supermarts will pay an initial monthly rent of ₹20.20 lakh and has deposited ₹1.21 crore as security. The contract includes a six‑year lock‑in period and provides for a 12 per cent rent escalation every three years. The lengthy tenure signals the retailer’s commitment to securing long‑term logistics capacity close to the Mumbai metropolitan region.
Panvel has emerged as an important logistics and warehousing node because of its access to the Mumbai‑Pune Expressway and its relative proximity to the Jawaharlal Nehru Port Authority. Improved road and rail links have encouraged large retailers, e‑commerce companies and third‑party logistics providers to expand their footprint in the area, where proximity to customer catchments can significantly reduce fulfilment times and distribution costs.
For Avenue Supermarts, the new facility will bolster its inventory‑based retail model by adding a strategically located distribution point. This is likely to improve stock rotation, reduce lead times to stores, and offer better control over logistics expenditure as the company continues to scale its retail operations across India.
From Adani Logistics’ perspective, leasing the site is part of a broader trend in which logistics owners seek to monetise real estate assets. Large, long‑term leases provide steady rental income and higher visibility over future cash flows. Industry observers say such transactions reflect both strong demand for warehousing near major transport hubs and a push by asset owners to optimise returns on existing property portfolios.
Experts note that the 12 per cent escalation clause every three years is relatively generous, reflecting confidence in rental growth prospects for premium warehouse space in key suburban logistics belts. The six‑year lock‑in also ensures medium‑term occupancy stability, giving the landlord predictability while allowing the tenant to plan supply‑chain investments.
The deal also comes at a time when logistics firms are reviewing their networks to support faster deliveries and lower inventory costs. Panvel’s connectivity makes it attractive not only for retail distribution but also for regional consolidation centres that serve both the western coast and interior markets.
While the transaction is a single commercial lease, it underscores larger structural shifts in India’s logistics sector: rising demand for organised warehousing, increasing institutional involvement in logistics real estate, and retailers integrating more closely with third‑party infrastructure providers. For DMart, securing a long‑term site near Mumbai helps maintain competitive service levels as it expands. For Adani Logistics, the agreement is a demonstration of the company’s ability to leverage assets and generate recurring income.
Industry watchers will watch similar markets around major ports and highways for the next wave of leasing activity as companies seek to shorten delivery windows and cut distribution costs. The Panvel lease is likely to be cited as an example of how strategic location and long‑term planning combine to support modern retail and logistics operations in India.
Key Takeaways:
- Adani Logistics has sub‑leased a 66,250 sq ft Panvel warehouse to Avenue Supermarts (DMart) on a 28‑year deal with a six‑year lock‑in.
- Initial rent set at ₹20.20 lakh per month with a security deposit of ₹1.21 crore and rent escalation of 12% every three years.
- Panvel’s strategic proximity to Mumbai‑Pune Expressway and JNPA makes it a key logistics hub and enhances Avenue Supermarts’ supply chain efficiency.
- The transaction highlights Adani Logistics’ asset‑monetisation strategy and growing demand for large warehousing near major transport nodes.
