Adani Logistics to earn over ₹114 crore from 28-year Panvel warehouse lease with Avenue Supermarts

Adani Logistics Ltd has secured a substantial long-term revenue stream through a warehousing lease agreement with Avenue Supermarts Ltd, the operator of the DMart retail chain. The deal, registered on December 24, 2025, will generate over ₹114.20 crore in rental income over the complete lease tenure, highlighting the growing scale and maturity of India's logistics real estate market.

Lease Agreement Details

The transaction involves a 28-year sub-lease agreement for a warehouse facility located at Survey No 131/1 and other parcels at Dharna Camp, Tehsil Panvel, District Raigarh. According to data from CRE Matrix, a real estate data analytics firm, the total rent payout over the lease period amounts to approximately ₹114.20 crore based on contracted rentals and escalation clauses.

Strategic Location Advantages

Panvel has emerged as one of the most preferred logistics and warehousing destinations in the Mumbai Metropolitan Region (MMR). The location offers several strategic advantages that make it attractive for retailers and logistics companies:

• Proximity to Jawaharlal Nehru Port Authority (JNPA)
• Strong connectivity to Mumbai and Navi Mumbai
• Access to key road and rail corridors
• Growing preference among FMCG companies and third-party logistics players

Industry experts note that Panvel is now rivaling Bhiwandi as a preferred warehousing cluster in the MMR, with Avenue Supermarts' decision to commit to a 28-year lease reflecting the retailer's emphasis on supply-chain efficiency and long-term backend infrastructure.

Market Trends and Implications

The agreement represents broader trends in India's logistics real estate market, where long lease tenures with built-in escalations are becoming increasingly common for Grade A logistics assets. Market participants observe that such arrangements are particularly attractive when tenants have strong balance sheets and predictable operational requirements.

For Adani Logistics, the deal strengthens its growing portfolio of logistics and warehousing assets while creating long-duration, annuity-style revenue streams. The company operates as part of the Adani Group's integrated logistics platform, which encompasses ports, rail, industrial parks and storage infrastructure.

Industry Outlook

The transaction reflects sustained institutional interest in India's logistics real estate sector, driven by consumption-led sectors such as retail and e-commerce. Long lease tenures, periodic escalations and blue-chip tenants continue to attract interest from institutional investors and infrastructure-focused funds.

Analysts expect leasing activity in India's logistics and industrial segment to remain strong, particularly in established hubs such as Panvel, Bhiwandi, Chakan and Sriperumbudur, as large retailers increasingly prioritize locking in warehousing capacity for decades rather than years to maintain competitive advantages through distribution efficiency.