IndoSpace, an investor and developer of industrial warehousing and logistics park, has agreed to invest Rs 1,000 crore (around $134 million) in a joint venture (JV) with Pune-based KSH Infra to develop a 10 million square feet portfolio of world-class warehousing and logistics parks across the country, over the next five years.
The JV will focus on premium micro-markets such as Pune, Mumbai, Delhi-NCR and Bengaluru, the company said in a statement.
Avendus Capital was the exclusive financial advisor on the transaction.
The focus of the partnership will also be on developing sustainable, resource-efficient, zero-carbon buildings for customers to benefit from the energy and water savings. “The projects will also use environment friendly, energy-efficient building materials, meeting global Green Building Standards,” the statement added.
“Due to pent-up demand, the opportunity is enormous. As a market leader, we are always on the lookout to deliver on our promise of a world-class warehousing backbone to India’s growth. We are delighted to partner with a reputed and renowned brand like KSH Infra. With its established and proven expertise, it is sure to add immense value to this joint venture,” said Rajesh Jaggi, Vice Chairman, Real Estate, Everstone Group.
Indospace, which is also a fund manager, is promoted by Everstone Capital, US-based real estate group Realterm and Singapore-based logistics service provider and investor GLP. In 2017, Canadian pension fund CPPIB invested $550 million in a joint venture Indospace Core aimed at setting up logistics facilities across the country, where GLP and Everstone are also investors.
IndoSpace has so far invested over $3 billion in building its industrial parks across India. It has 42 industrial parks and has its portfolio spread across 48 million square feet.
IndoSpace also manages three funds – IndoSpace Logistics Parks I, IndoSpace Logistics Parks II and IndoSpace Logistics Parks III, which have together raised over $1.16 billion in capital.
Earlier this month, VCCircle exclusively reported that Everstone Group is looking to consolidate two of its businesses, including IndoSpace, under a single entity as it plans an initial public offering (IPO) for the combined entity.
In May this year, Indospace had said it plans to invest $300 million to acquire land across major warehousing and industrial hubs in the country — and add 4 million sq ft of warehousing portfolio by the end of 2021. In 2020, it had invested $500 million across nine acquisitions.
KSH Infra, also a warehousing and logistic parks developer, is part of the 50-year old KSH Group which has multiple businesses such as internal container depot, manufacturing, and third-party logistics.
KSH Infra has worked with marquee investors such as Pacific Century Group of Hongkong, Mapletree Investments of Singapore, and Morgan Stanley Real Estate Fund of USA.
Last year, the Pune-based realtor agreed to sell 700,000 square feet of a 1.2 million sq ft under-development logistics park in the Chakan town of Maharashtra to Mapletree Investments.
KSH Infra has around three million square feet of industrial and logistics infrastructure to several multinational companies such as Kawasaki Motors, Faurecia, Kimberley Clark, Jabil, Bosch, Renault Nissan and Callisons, among others.
“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, said Rohit Hegde, Managing Director, KSH Infra.
We wanted to raise $200 million equity commitment with developmental capital to create a pan-India portfolio of 10-15 million sq ft over the next five years, he added.
