+
PE firms and corporates foraying into industrial real-estate
Real Estate

PE firms and corporates foraying into industrial real-estate

The industrial sector has witnessed strong investor interest in the past few years. In 2017 and 2018, over $ 7.2 billion has been committed in platform level leads only. “This is just the beginning,” says N Srinivas, Managing Director - Industrial Services, JLL India.

Both the Centre and state governments are now trying to promote investments in the logistics and warehousing sector. “Some measures include modifying policies to ease land acquisition, making land available for logistics projects under the newly formed logistics policies of various states, and monetising various government-owned land parcels belonging to port authorities, railways and highways through independent implementing agencies,” says Srinivas.

Also, an increasing number of PE firms and Indian corporates are foraying into the industrial and logistics real-estate sector. “They are being backed by international sovereign and pension funds focused on this sector because of its stability,” says Jasmine Singh, Senior Executive Director - Advisory & Transaction Services, CBRE. “This would certainly boost quality supply.” He further points to cities such as NCR, Mumbai, Pune and Chennai as major investment destinations, with Bengaluru, Amdavad and Hyderabad also on the investors’ radar.

Growth drivers
Favourable government policies and strong inherent market demand are key factors driving demand in industrial real estate in the near future. Leasing activity in the sector is primarily driven by “e-commerce, FMCG and retail, who have been key occupiers in the past two to three years,” says Singh. Srinivas sees strong demand from e-commerce, 3PL or logistics, organised retail and auto companies for logistics in the next few years. “In 2018, almost 60 per cent of logistics absorption was by these sectors alone,” he shares.

Implementation of policy reforms has also created a profound impact—Singh sees GST as a game-changer here. Also, the grant of infrastructure status to the logistics and warehousing sector has led to increased investor interest. Srinivas also sees initiatives such as Make in India as major influencers.

In 2019, the leasing volume for warehousing space is expected to breach the 20 million sq ft mark. And as the sector witnesses the use of technology, coupled with the Government’s reform push, “corporates across sectors will be driven to opt for large, modern and energy-efficient warehouses,” says Singh.

-SHRIYAL SETHUMADHAVAN

The industrial sector has witnessed strong investor interest in the past few years. In 2017 and 2018, over $ 7.2 billion has been committed in platform level leads only. “This is just the beginning,” says N Srinivas, Managing Director - Industrial Services, JLL India. Both the Centre and state governments are now trying to promote investments in the logistics and warehousing sector. “Some measures include modifying policies to ease land acquisition, making land available for logistics projects under the newly formed logistics policies of various states, and monetising various government-owned land parcels belonging to port authorities, railways and highways through independent implementing agencies,” says Srinivas. Also, an increasing number of PE firms and Indian corporates are foraying into the industrial and logistics real-estate sector. “They are being backed by international sovereign and pension funds focused on this sector because of its stability,” says Jasmine Singh, Senior Executive Director - Advisory & Transaction Services, CBRE. “This would certainly boost quality supply.” He further points to cities such as NCR, Mumbai, Pune and Chennai as major investment destinations, with Bengaluru, Amdavad and Hyderabad also on the investors’ radar. Growth drivers Favourable government policies and strong inherent market demand are key factors driving demand in industrial real estate in the near future. Leasing activity in the sector is primarily driven by “e-commerce, FMCG and retail, who have been key occupiers in the past two to three years,” says Singh. Srinivas sees strong demand from e-commerce, 3PL or logistics, organised retail and auto companies for logistics in the next few years. “In 2018, almost 60 per cent of logistics absorption was by these sectors alone,” he shares. Implementation of policy reforms has also created a profound impact—Singh sees GST as a game-changer here. Also, the grant of infrastructure status to the logistics and warehousing sector has led to increased investor interest. Srinivas also sees initiatives such as Make in India as major influencers. In 2019, the leasing volume for warehousing space is expected to breach the 20 million sq ft mark. And as the sector witnesses the use of technology, coupled with the Government’s reform push, “corporates across sectors will be driven to opt for large, modern and energy-efficient warehouses,” says Singh.-SHRIYAL SETHUMADHAVAN

Next Story
Equipment

Liebherr secures 130-dozer deal with Turkey’s State Hydraulic Works

Liebherr Turkey has signed a major equipment supply agreement with the Turkish State Hydraulic Works (DSİ) for the delivery of 130 crawler tractors to be used across the country’s key infrastructure and environmental projects.The agreement covers 120 PR 756 Litronic and 10 PR 736 Litronic crawler tractors, with production scheduled at Liebherr’s facility in Telfs, Austria. This marks a significant continuation of the long-standing collaboration between DSİ and Liebherr, which began over a decade ago with the delivery of PR 754 Litronic dozers.Designed for heavy-duty operations, the PR 75..

Next Story
Infrastructure Transport

Noida to Revamp Transport Nagar Chowk with Rs 4-Crore Beautification Plan

The Noida Authority has unveiled plans to redevelop Transport Nagar Chowk in Sector 67 with a Rs 4-crore beautification project. Aimed at enhancing connectivity, accessibility, and urban aesthetics, the project will upgrade a 500-metre stretch along DSC Road with modern, inclusive, and sustainable infrastructure.Officials stated that the stretch will be enhanced with ornamental lighting, sculptures, seating areas, bollards, food kiosks, and ramps for differently-abled individuals. A tender for the project is expected to be issued soon.Neelima Rana, partner at Orionn Architects—the firm behin..

Next Story
Infrastructure Transport

Centre Approves Noida Metro Extension to Bodaki Multimodal Hub

The Central government has approved the extension of the Noida Metro Aqua Line from Depot Station to the upcoming Multimodal Transport Hub (MMTH) at Bodaki, marking a major push for enhanced connectivity in the National Capital Region (NCR). The 2.6-km extension is expected to be completed within three years.The project, already cleared by the Uttar Pradesh Cabinet, will now move to the construction stage under the supervision of the Noida Metro Rail Corporation (NMRC). The extended route will include two additional stations — Junpat Village and Bodaki — connecting to the MMTH, which will ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?