IndoSpace to invest $1 billion to acquire new warehousing, logistics assets in India

economictimes.indiatimes.com:

IndoSpace is looking to deploy over $1 billion to acquire new warehousing and logistics assets across India over the next two-three years amid rising demand, led by improved connectivity and government’s supportive policies, said a top executive of the company. The joint venture between Everstone, Singapore-headquartered logistics facilities provider GLP and industrial real estate firm Realterm, will also be developing additional 30 million sq ft warehousing properties in the country.

“With the improved connectivity and recent government initiatives, we believe that modern, large, best-in-class logistics and grade A industrial warehousing facilities will continue to be in demand. The booming e-commerce sector and evolving consumption patterns are driving demand for modern logistics and quality warehousing facilities,” Rajesh Jaggi, Vice Chairman-Real Estate, Everstone Group, told ET.

Additionally, according to him, the rapid rebound of the manufacturing sector, fuelled by electronics and automotive industries, including electric vehicles, are generating strong rental growth across multiple markets in India. As a leading investor, developer, and operator of grade A industrial and logistics real estate in India, IndoSpace has the largest national network of 52 logistics parks with 58 million sq ft delivered and under development across key Indian cities.

In the backdrop of rising demand, IndoSpace will keep deepening its presence in the existing 11 markets and target expansion further into the top eight tier-I markets over the next three years. The company has already invested close to $3 billion, through a combination of equity and debt, in assets under management across its investment vehicles.