Warehousing, the sunrise sector for PE investments
WAREHOUSING & LOGISTICS

Warehousing, the sunrise sector for PE investments

In the last year, warehousing followed commercial in attracting the most investments in India’s real estate sector. Warehousing or industrial assets account for almost 19 per cent of investments, the second highest witnessed in 2018, notes Sanjeev Chandiramani, National Director-Capital Markets, Knight Frank (India). “ESR, Logos and Maple are some new entrants.”

Warehousing is a sector where more platform level deals will happen. “These include two kinds of investments,” explains Ashutosh Limaye, Director & Head-Consulting Services, Anarock Property Consultants. “At a project level, and to create a platform with a mandate or to develop a particular asset category.”

Warehousing investment offers a double advantage of rental yield and land price appreciation, observes Vijay Agrawal, Advisor, Equirus Capital. In future, these warehouses can be used for residential or commercial development, providing higher returns. “Already Everstone and Embassy have created a platform for warehouse investment with a commitment of over $ 2 billion. Domestic logistics companies, too, are trying to set up large warehouses with investor partnership.” The sector is expected to witness investment of over $ 7 billion in three years.” (Read more on the warehousing sector in CW’s June edition.)

Warehousing is a sunrise sector, avers Sonit Singh, COO and Head, Cross Border Capital Markets, JLL India. “While it is largely disorganised, there is consolidation happening. When a platform gets created, for instance the Logos or IndoSpace platform, they keep adding assets under it over the years.”

IndoSpace, the largest in the space, has over 11-11.5 million sq ft of operating assets; its total commitment in India is above $ 3.2 billion. Its successful fundraising reflects the increasing confidence of PE investors in the segment. In Limaye’s view, we will find more players like IndoSpace “with development and operational expertise, as well as both opportunistic and sovereign funds, willing or eager to deploy funds in warehousing.”

In the last year, warehousing followed commercial in attracting the most investments in India’s real estate sector. Warehousing or industrial assets account for almost 19 per cent of investments, the second highest witnessed in 2018, notes Sanjeev Chandiramani, National Director-Capital Markets, Knight Frank (India). “ESR, Logos and Maple are some new entrants.” Warehousing is a sector where more platform level deals will happen. “These include two kinds of investments,” explains Ashutosh Limaye, Director & Head-Consulting Services, Anarock Property Consultants. “At a project level, and to create a platform with a mandate or to develop a particular asset category.” Warehousing investment offers a double advantage of rental yield and land price appreciation, observes Vijay Agrawal, Advisor, Equirus Capital. In future, these warehouses can be used for residential or commercial development, providing higher returns. “Already Everstone and Embassy have created a platform for warehouse investment with a commitment of over $ 2 billion. Domestic logistics companies, too, are trying to set up large warehouses with investor partnership.” The sector is expected to witness investment of over $ 7 billion in three years.” (Read more on the warehousing sector in CW’s June edition.)Warehousing is a sunrise sector, avers Sonit Singh, COO and Head, Cross Border Capital Markets, JLL India. “While it is largely disorganised, there is consolidation happening. When a platform gets created, for instance the Logos or IndoSpace platform, they keep adding assets under it over the years.”IndoSpace, the largest in the space, has over 11-11.5 million sq ft of operating assets; its total commitment in India is above $ 3.2 billion. Its successful fundraising reflects the increasing confidence of PE investors in the segment. In Limaye’s view, we will find more players like IndoSpace “with development and operational expertise, as well as both opportunistic and sovereign funds, willing or eager to deploy funds in warehousing.”

Next Story
Real Estate

What Does Home Insurance Really Cover?

Home insurance is one of the most important protections a homeowner can have. It offers financial cover for unexpected damages, losses, or liabilities related to your property. However, many homeowners are not fully aware of what is actually included in their home insurance policy.This guide breaks down what home insurance really covers, so you can be better prepared and make informed decisions.What is home insurance?Home insurance is a financial product that protects your house and belongings against damage, theft, or accidents. It generally includes coverage for the building itself, as ..

Next Story
Infrastructure Urban

Hettich Strengthens Industry Ties at Madhya Pradesh Investment Meet

Hettich India, a global leader in furniture fittings, reinforced its commitment to Madhya Pradesh’s industrial growth as a Guest of Honour at an Interactive Session on Investment Opportunities in Power, Renewable Energy Equipment, and White Goods Manufacturing, hosted by the Government of Madhya Pradesh in partnership with the Confederation of Indian Industry (CII) at Hotel Trident, Nariman Point, Mumbai.The session, chaired by Dr Mohan Yadav, Hon’ble Chief Minister of Madhya Pradesh, brought together leading domestic and international investors, industry representatives, and business lead..

Next Story
Equipment

Raimondi Names New Saudi Branch Head

Raimondi Middle East has announced the appointment of Ahmad Shakkour as Branch Manager for the Kingdom of Saudi Arabia, reinforcing the company’s commitment to expanding its presence in one of its key regional markets.With Saudi Arabia driving a wave of large-scale infrastructure and urban development projects, Raimondi aims to strengthen its on-ground operations and customer engagement. The company currently has over 100 cranes deployed across the country and continues to expand its technical and service teams to support growing demand.“Saudi Arabia represents a cornerstone of our regiona..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?