Bengaluru: Singapore-based firms Ascendas-Singbridge Group and Temasek Holdings Pvt. Ltd have jointly committed to invest around $300 million in logistics and industrial real estate projects in India through Ascendas India Logistics Programme.

The commitment of capital comes after Ascendas-Singbridge partnered with Indian industrial real estate firm Firstspace Realty in 2017 to form the joint venture Ascendas-Firstspace to deliver logistics and industrial facilities across major warehousing and manufacturing hubs in the country.

Ascendas-Singbridge is jointly owned by Temasek Holdings and JTC Corp.

Industrial real estate is swiftly emerging as the go-to asset class for investors and developers as India’s consumption and e-commerce story gets a boost from the government’s Make in India initiative and the goods and services tax (GST).

“Given strong domestic consumption trends, investments in high quality logistics and industrial facilities are necessary to support India’s economic growth in the years to come," said He Jihong, chief investment officer, Ascendas-Singbridge Group in a statement. “We welcome Temasek’s support and investment in the Programme, which will leverage Ascendas-Firstspace’s global customer base and local execution capabilities to meet the needs of the future economy."

Tapping on India’s growing logistics sector, Ascendas India Logistics Programme will invest in projects in Mumbai, National Capital Region (NCR), Pune, Chennai, Bengaluru and Ahmedabad among others. It aims to develop a portfolio of 13 to 15 million sq ft of space. So far, it has two seed assets with 1.25 million sq ft of operational space and over 4 million sq ft in development potential.

Promeet Ghosh, managing director, India, Temasek, said, “We view the logistics and industrial sector as a good proxy to growing middle-income populations and transforming economies. The positive momentum of the sector, underpinned by the Indian government’s Make in India vision as well as healthy consumption trends, present opportunities for us to further invest in India’s continued growth."

India’s warehousing and logistics sector has attracted investments of more than a billion dollars in 2017 and is expected to witness higher interest in building businesses around steady rental income.

“With its institutional backing and local execution ability, Ascendas-Firstspace is the leading player in India’s logistics and industrial real estate sector. We are excited to further strengthen our position, and are privileged to have the support of Ascendas-Singbridge and Temasek," said Aloke Bhuniya, CEO of Ascendas-Firstspace.

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