IndoSpace Invests INR 1000 Cr For Expanding Warehousing Portfolio in NCR

IndoSpace, a developer of industrial and logistics parks, has invested Rs 1000 Cr to expand its warehouse presence in NCR, according to a senior executive.

The company has constructed 3.4 million square feet in two logistics parks, one in Dhatir, close to Palwal, and the other in Taoru, close to Sohna.

Over the past two years, the company has developed 3.4 million square feet across two NCR parks.

IndoSpace is the real estate division of Everstone Group, a private equity firm concentrated on India and Southeast Asia.

In addition to these parks, IndoSpace owns eight additional parks with a total development potential of 14 million square feet in the NCR region.

The company is evaluating a number of greenfield assets in NCR for FY24, as it anticipates that the current and forthcoming infrastructure (KMP, DME) will lead to an increase in demand for warehousing, particularly among 3PL and e-commerce companies.

Jaggi stated that going forward, they intended to maintain the momentum, and they were confident that these new parks would play a significant role in fostering the growth of various industries, including Pharma, 3PL, e-commerce, distribution, and retail.

IndoSpace manages 50 logistics sites spanning 57 million square feet across 10 cities.

Around Haryana's Bilaspur Chowk region, which includes Pataudi Road, Tauru Road, Farukh Nagar, and Jhajjar, the warehousing industry has flourished.

According to Savills India, more than 46 million square feet of industrial and warehouse space was absorbed in 2022. Delhi NCR had the highest absorption rate among India's main cities in 2022, at 16%, followed by Mumbai at 14%.

In terms of investment, the Indian warehousing industry raised USD 1.5 billion in private equity in 2022.

The 3PL and e-commerce industries continued to drive warehouse demand in 2022, accounting for 52% of the total absorption. The total inventory of industrial and warehouse space in tier I cities was 300 million square feet at the end of 2022 and is projected to reach 342 million square feet in 2023.