Ahmedabad: Institutional investor Ascendas Firstspace has agreed to acquire nearly 9 lakh square feet of Grade A warehousing and industrial space in Bavla on the outskirts of Ahmedabad, in a transaction valued at about ₹275 crore. The forward purchase underlines sustained investor confidence in Gujarat’s logistics corridors as supply chains recalibrate towards organised, large-format facilities.
The asset, being developed by a Gujarat-based industrial developer, will be delivered in phases over the next 18 months under a build-and-transfer structure. The forward purchase model allows Ascendas Firstspace to secure capacity during the construction stage while providing development capital to the local builder, reflecting a financing structure increasingly common in India’s industrial real estate market. Bavla has evolved into a strategic warehousing node in western India due to its connectivity to National Highway 48 and its proximity to Ahmedabad city as well as key industrial belts linking Gujarat with Maharashtra and Rajasthan. Industry analysts say the micro-market benefits from access to manufacturing clusters, port infrastructure and consumption centres, making it attractive for third-party logistics providers, e-commerce operators and light industrial tenants.
The expansion strengthens the Ascendas Firstspace portfolio in Gujarat, where institutional-grade logistics parks are witnessing rising demand amid formalisation of the warehousing sector. Over the past decade, policy reforms such as the Goods and Services Tax have encouraged consolidation into larger, compliant facilities, replacing fragmented storage formats. Urban economists note that growth in Grade A warehousing has implications beyond investor returns. Modern logistics parks typically incorporate fire safety systems, higher floor load capacities and structured truck circulation, improving operational efficiency and reducing congestion spillover into city cores. However, they also place pressure on peri-urban land, water resources and transport networks if not aligned with regional planning frameworks.
As Ahmedabad expands outward, planners stress the importance of integrating industrial growth with sustainable infrastructure. Energy-efficient building envelopes, rooftop solar installations and water recycling systems are increasingly becoming benchmarks for responsible warehousing development. Institutional investors, including Ascendas Firstspace, face growing scrutiny over environmental performance metrics in line with global ESG standards. Transaction advisors involved in the deal indicated that structured acquisitions are gaining traction as developers seek capital recycling options while scaling pipelines.
For Gujarat’s economy, such investments support employment generation in logistics, facility management and allied services, while strengthening the state’s position within national freight corridors. The staged delivery of the Bavla project over 18 months will test market absorption in a region that continues to attract manufacturing and distribution occupiers. As India’s supply chains modernise, the expansion of organised logistics infrastructure in hubs like Ahmedabad signals both economic momentum and the need for balanced, climate-aware industrial planning.
Ahmedabad Sees Major Warehousing Investment Deal
