BackEmbassy, Warburg Pincus join hands to develop industrial parks
Embassy, Warburg Pincus joint venture will develop industrial and warehousing spaces across the country
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Bengaluru: Realty player Embassy Group on Thursday said it has entered into an agreement with an affiliate of global private equity firm Warburg Pincus to form a joint venture Embassy Industrial Parks to develop industrial and warehousing spaces across the country.
“This is an exciting new foray for the Embassy Group that allows us to move into a space that we expect to see grow tremendously - spurred by government policies, concepts like ‘Make in India’ and the booming e-commerce industry," Embassy Group Chairman and MD Jitu Virwani told reporters in Bengaluru.
The Embassy Industrial Parks will have an equity commitment of up to $250 million, from its joint venture partners, to fund land acquisition and development, he added. The company also appointed Anshul Singhal as Embassy Industrial Parks CEO. The joint venture entity marks the Embassy Group’s entry into a new business segment focusing on the development of industrial and warehousing spaces near key cities across India, Virwani said.
The market for modern industrial and warehousing spaces is rapidly expanding and is estimated to reach 125 million sq ft over the next five years, he said. The business will primarily operate on the lease-rental model that the Embassy Group has successfully deployed in its commercial projects, he said. These modern, well-planned, technology-enabled industrial and warehousing spaces are targeted at industry verticals such as 3PL, e-commerce, FMCG, automobile ancillaries and retail, Virwani said.
“We believe the industrial and warehousing real estate sector in India presents strong growth potential, as companies in e-commerce and other industries seek reliable developers who can work with them nationally to meet their needs for quality warehousing infrastructure," Warburg Managing Director Viraj Sawhney said.
Singhal said Embassy Industrial Parks is looking to build and lease 15-20 million sq ft over the next few years and the immediate focus will be to ensure that it takes up strategic land positions near Mumbai, Delhi, Bengaluru, Chennai, Pune and Ahmedabad.
Embassy Industrial Parks will offer spaces in industrial parks and help clients set up or expand their operations in India, he said.
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