Bengaluru: IndoSpace, a joint venture between private equity firm Everstone Group and US-based industrial real estate firm Realterm, said it will launch five new industrial and logistics parks across Mumbai, the National Capital Region (NCR) and Bengaluru.
Along with the recent expansion and development of its existing Ranjangaon park in Pune, these new parks will add around 10 million sq. ft. of leasable logistics and light manufacturing space to IndoSpace’s portfolio.
This growth in industrial real estate will take IndoSpace’s operational and underdevelopment pipeline to around 30 million sq. ft., catering to the rising demand in India for good quality warehousing and light manufacturing facilities from companies across multiple sectors, the firm said on Wednesday.
The five planned parks will be located in Narasapura (Bengaluru), Badli and Bhaproda (National Capital Region), and two parks at Khopoli, near Mumbai.
“This significant expansion highlights IndoSpace’s focus on strongly supporting growth in India’s logistics and light manufacturing sector, which will robustly expand due to improved infrastructure across the nation, the landmark GST reform, and a fast-growing e-commerce sector," said Rajesh Jaggi, managing partner, real estate, Everstone Group.
“The government’s welcome move of granting infrastructure status to the logistics sector further strengthens our positive outlook for IndoSpace, as well as for the sector as a whole, because this would help the sector access infrastructure lending at competitive rates. Logistics players will also have multiple instruments to raise money, including funds from insurance companies and pension funds with longer tenure," added Jaggi.
In October, IndoSpace said it had appointed Aditya Sikri as president of the firm. Sikri joined Indospace after Canada Pension Plan Investment Board (CPPIB) made a significant commitment of over $1 billion towards IndoSpace’s assets earlier this year.
Last month, IndoSpaces launched its third fund, IndoSpace III, with a target corpus of $550 million, which would take its total assets under management to above $1 billion.
So far, it has raised $584 million across two industrial real estate funds. The first, IndoSpace Logistics Parks I, raised $240 million in 2009, and the second, IndoSpace Logistics Parks II raised $344 million in 2014.
Currently, IndoSpace’s portfolio includes 28 logistics and industrial parks across the country.