Leading Warehouse Player IndoSpace to Amplify Industrial Real Estate Portfolio, Aiming for 58 mn sq ft by 2028

IndoSpace, a leading developer of industrial real estate and logistics parks, backed by private equity giant Everstone Group, is set to escalate its portfolio to 58 million sq ft by 2028, marking a significant expansion in the industrial real estate sector.

The company is strategically positioning itself to leverage the surging demand in the e-commerce and manufacturing sectors, with plans to invest $1 billion in acquiring warehousing assets over the next three years, adding an additional 22 million sq ft to its portfolio.

Strategic Expansion and Investment:

IndoSpace has already invested nearly $3 billion, utilizing a blend of equity and debt, in managing assets across its various investment vehicles in India. The company is poised to deepen its footprint in its existing 11 markets, including Rajpura, Delhi/NCR, Ahmedabad, Mumbai, Pune, and Bengaluru, reflecting a comprehensive approach to industrial real estate development.

Operational Portfolio and Construction Plans:

Currently, IndoSpace operates a diverse portfolio comprising 30 million sq ft, with 33% in industrial and 67% in warehousing properties. The company has 6 million sq ft under construction and plans to construct an additional 22 million sq ft in the coming two to five years, aiming to nearly double its operational portfolio.

Inference and Market Insights:

IndoSpace’s ambitious expansion plans underscore the growing significance of industrial storage and warehousing in India, driven by the burgeoning e-commerce and manufacturing sectors. The company’s strategic investment and development in key markets like Mumbai, Delhi/NCR, and Bengaluru are likely to cater to the increasing demand for industrial and warehousing spaces in these regions.

The emphasis on both industrial and warehousing properties highlights the diverse market needs and the company’s approach to addressing the varied requirements of the industrial sector. The planned expansion in cities with thriving industrial activities and substantial e-commerce presence is indicative of IndoSpace’s strategic alignment with market trends and demand patterns.

This expansion is not just a growth trajectory for IndoSpace but also a reflection of the evolving industrial real estate landscape in India. The substantial investment and development in this sector are likely to propel the industrial real estate market forward, contributing to the overall economic growth and development of the regions involved.

IndoSpace’s endeavors are poised to redefine the industrial and warehousing real estate sector, offering enhanced solutions and spaces to accommodate the growing needs of industries and e-commerce giants in India, thereby fostering a conducive environment for industrial growth and logistical efficiency.

India Warehousing Story

IndoSpace's strategic expansions and investments highlight the central role and accelerated development of warehouses in India. Demand growth in the e-commerce and manufacturing industries is a key factor necessitating innovative and expansive warehousing solutions. 67% of IndoSpace's current operational portfolio is devoted to warehousing, reflecting the sector's significance in India's modern industrial landscape.

Emerging as warehousing centres, cities like Mumbai, Delhi/NCR, and Bengaluru accommodate to the extensive demands of flourishing industrial activities and e-commerce operations. The substantial investments and developments in these regions are indicative of India's robust warehousing market and its vital role in promoting industrial expansion and logistical efficiency.

IndoSpace's endeavours in warehousing are not just contributing to the sector's development but are also influencing the future of warehousing in India, harmonising with the evolving market trends and addressing the diverse requirements of the industrial sector. The developments in India's warehousing sector are poised to provide optimised solutions, thereby enhancing the country's logistical framework and meeting the rising demands of industries and e-commerce companies.