Everstone-backed industrial and warehousing real estate developer, IndoSpace, is set to develop two warehousing assets in partnership with the Karnataka government as part of a memorandum of understanding signed between the two parties, it said on Thursday.
IndoSpace, which marked the final close of its latest private equity fund at $600 million (about Rs 5,000 crore), is set to invest about Rs 580 crore or about $69 million to develop two new industrial and logistics park assets in Karnataka, while the MoU entails an investment of Rs 3,000 crore. These assets will be in addition to its three operational warehousing assets in the state.
The Everstone Group-backed developer expects to infuse Rs 240 crores for the development of IndoSpace Nelamangala II, an industrial and logistics hub located on the Bengaluru-Mumbai highway or the National Highway 48, across an area of over 35 acre.
The other asset, IndoSpace Narasapura II, is set to receive an investment of Rs 340 crore. The asset, spread across 40 acre and situated off Old Madras Road (National Highway 75), will be constructed in proximity to industrial hubs like Vemgal, Malur, and Hoskote.
IndoSpace’s existing assets in Karnataka include IndoSpace Nelamangala I, IndoSpace Bommasandra that is located on the new Bengaluru - Chennai spanning 5.4 acre, and Narasapura I.
IndoSpace’s current portfolio includes 52 logistics parks spread across 58 million square feet delivered or under development across 11 cities including Delhi NCR, Ahmedabad, Mumbai, Pune, Chennai, Coimbatore, among others.
Last week, Industrial and warehousing real estate developer KSH Infra, a subsidiary of Pune-based KSH Group, announced its entry in the south India market with an investment in a warehousing project in Tamil Nadu.
The company will invest about Rs 450 crore ($53.6 million) in an asset in Hosur, Tamil Nadu, located close to the Bangalore market.
In line with the increasing demand for warehousing and logistics assets in India, especially in the South India market, Mumbai-based Axis Asset Management Company, closed its maiden deal from the real estate investment fund set up jointly with US-based developer Tishman Speyer.
The fund bought a 1.5-acre land parcel in Chennai’s Fintech City for about Rs 75 crore through an e-auction conducted by the Tamil Nadu Industrial Development Corporation (TIDCO).