Do investors prefer new warehouse developments or completed projects?
WAREHOUSING & LOGISTICS

Do investors prefer new warehouse developments or completed projects?

Major investors in the warehousing space include Ivanhoé Cambridge and QuadReal Property Group, Ascendas Firstspace, Warburg Pincus, Canada Pension Plan Investment Board (CPPIB), Everstone Capital Management, Brookfield, DHL India and Allcargo Logistics, among others.

The tapping of warehouse space depends on investment appetite and horizon. “While new developments are being preferred by investors for a shorter horizon, many major institutional funds are exploring developments with a mix of completed projects with standard and quality design, facility and operational easiness as well as a land bank for future developments,” observes Chandranath Dey, Senior Director and Head - Industrial Consulting and Supply Chain Consulting, JLL India. Apart from these two types of developments of stabilised assets and a mix of land and stabilised assets, some investors are also exploring land-only options for the long term owing to the absence of suitable investment-grade assets at present, he adds.

Embassy Group is agnostic towards investing in new developments or completed projects as long as it makes business sense. “The criteria for considering completed projects are when they meet our minimum specification offering and are fully compliant,” adds Aditya Virwani, COO, Embassy Group.

An ICRA report states that investment platforms with good financial backing have shown their intention of growing through a mix of in-house development as well as acquisition of completed or under-construction properties. Owners of completed projects will be able to monetise their assets at good yields, whereas investment funds may see potential for further improvement in valuations through their operational strengths and asset improvements, as per the report.

SERAPHINA D’SOUZA

Major investors in the warehousing space include Ivanhoé Cambridge and QuadReal Property Group, Ascendas Firstspace, Warburg Pincus, Canada Pension Plan Investment Board (CPPIB), Everstone Capital Management, Brookfield, DHL India and Allcargo Logistics, among others. The tapping of warehouse space depends on investment appetite and horizon. “While new developments are being preferred by investors for a shorter horizon, many major institutional funds are exploring developments with a mix of completed projects with standard and quality design, facility and operational easiness as well as a land bank for future developments,” observes Chandranath Dey, Senior Director and Head - Industrial Consulting and Supply Chain Consulting, JLL India. Apart from these two types of developments of stabilised assets and a mix of land and stabilised assets, some investors are also exploring land-only options for the long term owing to the absence of suitable investment-grade assets at present, he adds. Embassy Group is agnostic towards investing in new developments or completed projects as long as it makes business sense. “The criteria for considering completed projects are when they meet our minimum specification offering and are fully compliant,” adds Aditya Virwani, COO, Embassy Group. An ICRA report states that investment platforms with good financial backing have shown their intention of growing through a mix of in-house development as well as acquisition of completed or under-construction properties. Owners of completed projects will be able to monetise their assets at good yields, whereas investment funds may see potential for further improvement in valuations through their operational strengths and asset improvements, as per the report. SERAPHINA D’SOUZA

Next Story
Infrastructure Transport

JNPA Becomes First Indian Port to Cross 10 Million TEU Capacity

The Jawaharlal Nehru Port Authority (JNPA), located at Uran in Navi Mumbai, has become the first port in India to achieve over 10 million TEUs (twenty-foot equivalent units) in container handling capacity.With the recent expansion, the port now operates five container terminals with a combined capacity of 10.4 million TEUs, alongside two liquid and two general cargo terminals.Handling more than half of India’s container traffic, JNPA processed 7.05 million TEUs in 2024 and has moved 15.39 million tonnes of containers and 16.64 million tonnes of total cargo in the first two months of FY 2025..

Next Story
Infrastructure Transport

Nod for Rs. 36.26 billion Expansion of Pune Metro Line 2

The Union Cabinet has approved the Rs.36.26 billion expansion of Pune Metro Line 2, adding 12.75 km of track and 13 new stations to improve east–west connectivity across the city.The project aims to link Pune’s urban core with rapidly growing suburbs, supporting the city’s rising demand for efficient and sustainable transport solutions. This expansion is part of Corridor 2 of the Pune Metro and includes two key routes: Vanaz to Chandani Chowk (Corridor 2A) and Ramwadi to Wagholi/Vitthalwadi (Corridor 2B).It will connect residential, IT, and educational hubs in areas such as Bavdhan, Koth..

Next Story
Infrastructure Transport

Assembly begins for ‘Nayak’ TBM on Thane– Borivali Twin Tunnel Project

The assembly of ‘Nayak’, the first of four Tunnel Boring Machines (TBMs) for the Thane–Borivali Twin Tube Tunnel Project, has commenced at the Thane site. Built by German firm Herrenknecht AG and deployed by Megha Engineering & Infrastructure (MEIL), the TBM marks a key milestone in Mumbai’s ambitious 11.8-km underground road corridor beneath Sanjay Gandhi National Park.The twin tunnels will reduce the Thane–Borivali travel distance by 12 km and decongest Thane Ghodbunder Road. ‘Nayak’, with a 13.2-metre diameter, is designed to bore through challenging geological conditions ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?