Industrial real estate and logistics park developer IndoSpace on Wednesday announces its partnership with KSH infra to develop a portfolio of grade A warehousing and logistics parks over the next five years across the country.
To develop these assets spread over 10million sq. ft., IndoSpace will be investing Rs 1,000 crore in this new alliance.
The primary focus of the joint venture will be the tier I premium micro-markets including Pune, Mumbai, Delhi-National Capital Region (NCR), and Bangalore.
In this venture, KSH Infra will take the responsibility of identifying and developing the assets and will also be co-investing in the assets along with IndoSpace.
“The demand for warehousing and logistics space is high and the opportunity is enormous. As a market leader in this space, we are always looking to support India’s growth by enhancing our reach. With an established partner like KSH Infra, we are confident of tapping into the market potential,”Rajesh Jaggi, Vice Chairman, Real Estate, Everstone Group
AS part of the joint venture there are plans underway to develop 5-7 warehousing and logistics assets with an average size of 1-2 million sq ft each. KSH is already in talks for four such greenfield assets including two in Pune and one each in Delhi and Mumbai.
“We see increasing demand for warehousing and industrial infrastructure from e-commerce, third party logistics, and manufacturing players looking to set up base in India. Given the immense growth opportunity, we are excited to partner with the market leader. With Indospace, we plan to expand our footprint pan India,”Rohit Hegde, Managing Director, KSH Infra.
The focus of the partnership will also be on developing sustainable and resource-efficient assets that will have a zero-carbon footprint ensuring energy and water savings. To be branded under KSH Infra, the projects will be meeting global green building standards.
“This is a unique partnership between two of India’s leading developers in the warehousing space. It will enable both players to leverage their strengths to deliver superior outcomes for their clients and investors,”Prateek Jhawar, Executive Director and Head, Infrastructure & Real Assets, Avendus Capital that acted as the exclusive financial advisor for the transaction.
IndoSpace-a joint venture between the Everstone Group, an India and Southeast Asia-focused private equity and real estate investor, GLP, and Realterm, a US-based global industrial real estate group, is India’s largest developer and owner of the grade A industrial real estate and logistics parks. The real estate and logistics park developer has a network of 42 logistics parks with 48 million sq ft delivered and under development space across 10 cities in India.
KSH Infra has already worked with global institutional investors including Hong Kong-based Pacific Century Group, Singapore’s Mapletree Investments, and Morgan Stanley Real Estate Fund. The Pune-based company has so far developed over 3 million sq ft of industrial and logistic infrastructure for multinational companies such as Kawasaki Motors, Faurecia, Kimberley Clark, Jabil, Bosch, Renault Nissan, Callison’s, etc.