IndoSpace Will Invest USD 1 Billion in The Acquisition of Warehouse and Logistics Assets

IndoSpace, a major private equity firm's backed developer of industrial real estate and logistics parks in India, aims to spend over USD 1 billion over the next two to three years on the purchase of new warehouse and logistics assets in the country.

IndoSpace, a joint venture between Everstone, Singapore-based logistics facilities provider GLP, and industrial real estate firm Realterm, will also develop 30 million square feet of additional warehouse property in India.

"We believe that modern, large, best-in-class logistics and grade A industrial warehousing facilities will remain in demand as a result of enhanced connectivity and recent government initiatives. Rajesh Jaggi, vice president and chairman-Real Estate at Everstone Group, stated that the burgeoning e-commerce industry and shifting consumption patterns are fueling demand for contemporary logistics and quality warehousing facilities.

According to him, the rapid resurgence of India's manufacturing sector, fueled by the electronics and automotive industries, as well as electric vehicles, is generating robust rental growth in India's various markets.

As a prominent investor, developer, and operator of grade A industrial and logistics real estate in India, IndoSpace has the largest national network of 52 logistics parks, with 58 million square feet delivered and under development in key Indian cities.

In the next three years, against the backdrop of increasing demand, IndoSpace intends to expand into the top eight tier-I markets and continue to expand its presence in the 11 markets.

Through a combination of equity and debt, the company has already invested close to USD 3 billion across its investment vehicles in assets under management.

It is currently soliciting funds for its fourth development vehicle, IndoSpace Logistics Parks IV (ILP IV), with a fund size target of USD 600 million.

The Canada Pension Plan Investment Board (CPP Investments) has already invested over USD 205 million as an anchor investor in this new fund, bringing the partnership between CPP Investmentsand IndoSpace to over $1 billion in total assets, including previous investments.