Mumbai: Industrial real estate and warehousing developer IndoSpace, which is backed by private equity fund Everstone Group, has closed its third and largest logistics real estate fund till date at $1.2 billion.

The fund, IndoSpace Logistics Park III, drew commitments worth $580 million of equity, which will create a corpus of more than $1.2 billion post leverage. IndoSpace will use the capital to develop and acquire industrial and logistics-related real estate investments in India. The fund was significantly oversubscribed on the back of strong investor demand, the investor said.

IndoSpace has 30 industrial and logistics parks across India with 30 million sq. ft of developed and under-development facilities. Its customers include IKEA, Amazon, Nissan, PepsiCo, DHL, Leoni, Steelcase, Kubota, Ericsson, Bosch and Delphi. It is promoted by Everstone Group, GLP and Realterm.

“The successful fundraise is a big endorsement of IndoSpace’s leadership in the industrial and logistics real estate space in India," said Sameer Sain, co-founder and chief executive officer of Everstone. Everstone is a India- and South East Asia-focused alternate asset manager, with assets in excess of $5 billion across private equity, real estate, green infrastructure and venture capital. The third fund’s close takes IndoSpace’s total commitment in India to over $3.2 billion. IndoSpace had launched the third fund last November, targeting a corpus of $550 million, Mint had reported.

IndoSpace’ first fund IndoSpace Logistics Parks I was raised in 2009 with a corpus of $240 million. Its second fund IndoSpace Logistics Parks II raised $344 million in 2014.

“The successful fundraise of ILP III reflects the confidence institutional investors have in us and we look forward to working closely with IndoSpace to capitalize on the early growth stages of India’s rapidly modernizing logistics landscape," said Ming Mei, co-founder and chief executive officer at alternate asset manager GLP. In September 2018, GLP established a strategic joint venture with IndoSpace, marking its entry into India. GLP will partner with IndoSpace to develop logistics parks in India as well as co-invest in IndoSpace’s managed investment vehicles. GLP’s real estate platform is one of the largest in the world, spanning about 720 million sq. ft.

Apart from the latest fundraise, Everstone Group and GLP have also partnered to invest around $500 million in the logistics ecosystem in India. The two firms see investment opportunities across the logistics value chain, including in express delivery, smart trucks, telematics and automation/robotics. The partnership will leverage GLP’s expertise in pioneering modern logistics ecosystems and Everstone’s large and growing network through its private equity, infrastructure and real estate portfolio.

“This new partnership with GLP will allow us to leverage each other’s strengths to create a unique technology-led logistics investment strategy in India. Our existing capabilities and national network, coupled with GLP’s strong global track record and expertise will enable us to add significant value to our investments," Everstone’s Sain said.

India will be the fourth country in which GLP will chase its logistics strategy, following China, US and Japan. GLP has invested in Tompkins International, a US-based company that offers supply chain solutions, and G7—the largest telematics platform provider in China used by 90% of China’s largest trucking companies—among other investments.

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