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
Real Estate

MHADA Slashes EWS Home Prices in Thane Scheme

The Konkan Housing and Area Development Board (KHADB), a wing of the Maharashtra Housing and Area Development Authority (MHADA), has trimmed the sale price of 6,248 Pradhan Mantri Awas Yojana (Urban) homes in Thane district and placed them on a first-come, first-served basis. In Shirgaon, the cost of 5,236 units has fallen by about Rs 0.14 million each, from roughly Rs 2.07 million to Rs 1.93 million, while in Khoni the price for 1,012 houses has been lowered by around Rs 0.10 million to about Rs 1.91 million apiece. KHADB chief officer Revati Gaikar said the cuts aim to help economi..

Next Story
Real Estate

Brigade Plans Rs 21 Bn South Chennai Housing Scheme

Brigade Enterprises has unveiled Brigade Morgan Heights, a residential development in South Chennai carrying a gross development value of about Rs 21 billion. Rising on a 14.7-acre plot along the Sholinganallur–Medavakkam corridor, the scheme will deliver roughly 2.2 million square feet of premium apartments across 1,250 two-, three- and four-BHK units, the largest spanning 2,599 square feet.Positioned just 150 metres from the forthcoming Classical Tamil Institute Metro Station, the site offers ten-minute road links to technology parks such as ELCOT, Wipro and Cognizant, enhancing its appeal..

Next Story
Infrastructure Urban

Saya, Lemon Tree To Run 336 Business Suites In Noida

NCR-based real estate developer Saya Group has partnered with Carnation Hotels Pvt Ltd, a subsidiary of Lemon Tree Hotels, to manage 336 fully serviced business suites in Greater Noida. The suites are located within Saya SouthX, a 3-acre mixed-use commercial development with a built-up area of around 68,000 square metres.Under the agreement, Lemon Tree Hotels will operate the suites—each averaging 62 square metres—spanning the 7th to 25th floors of the development. The collaboration aims to offer high-quality business accommodation tailored to the needs of working professionals, entreprene..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?