Embassy Industrial Parks mulls investing $300 mn to develop ongoing projects

Embassy Industrial Parks, a joint venture between realty firm Embassy Group and private equity firm Warburg Pincus, is planning to develop its logistics and warehousing projects with an investment of $300 million in the next three years.

The company, since its operations in 2016, has already invested $ 80 million in developments and is further developing industrial and warehousing parks in Chakan (Pune); Bilaspur and Farrukhnagar (NCR); Sriperumbudur and Hasur (Tamil Nadu); and Hyderabad in a phased manner.

Aditya Virwani, CEO, Embassy Group, said, “We have completed around 2.7 million sq ft area so far across three warehousing parks at Chakan, Bilaspur and Farrukhnagar and we are working to develop around 7 million sq ft of warehousing and industrial spaces.”

Further, he adds, “We will be infusing $250-300 million to complete these ongoing projects.”

Virwani said that Grade A warehousing spaces demand has increased after the implementation of goods and services tax (GST). The main drivers of the demand are e-commerce and third-party logistics firms.

He also said that the demand from automobile companies has taken a hit because of the slowdown in the automobile industry but it will not affect the overall leasing activities.

However, according to reports in the first half of 2019, the leasing of warehousing spaces went up by 31% to over 13 million sq ft across eight major cities.

Speaking about its various on-going projects, Virwani said the Embassy Industrial Parks has acquired land of 52 acres at Chakan, Pune with a development potential of 1.1 million sq ft. In Bilaspur and Farrukhnagar, it has 24 acres with 6 lakh sq ft area and 108 acres with 3 million sq ft of development potential respectively.

The company has 198 acres with 2.7 million sq ft of development potential in Sriperumbudur. About 63 acres are offered as plotted development.

Apart from that, 60 acres land is in Hosur with 1.3 million sq ft of development potential and 45 acres of land with 1.31 million sq ft capacity in Kothur, Hyderabad.

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