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

Centre proposes digital property law to modernise registrations

In a landmark move to modernise India’s property registration system, the Central Government has released the draft Registration Bill, 2025, which seeks to replace the 117-year-old Registration Act of 1908. The proposed legislation introduces a fully digital, paperless, and citizen-centric framework for registering immovable property — a first for India’s real estate sector. Prepared by the Department of Land Resources under the Ministry of Rural Development, the draft bill proposes key changes such as online submission and registration of documents, electronic admission and verific..

Next Story
Infrastructure Transport

GMDA Approved to Cut 1,300 Trees for Gurugram Metro Construction

The Gurugram Metropolitan Development Authority (GMDA) has obtained approval to fell 1,300 trees between Millennium City Centre and Hero Honda Chowk for the Gurugram Metro project, officials stated on Monday.A senior GMDA official mentioned that the forest department had granted clearance the previous week. The official explained that permission had been received to cut down 1,300 trees, while approval for felling an additional 500 trees on the stretch from Hero Honda Chowk to Sector 9 was expected soon. They added that the modalities for tree felling would be coordinated with Gurugram Metro R..

Next Story
Infrastructure Transport

PIB Clears East-West Corridor for Lucknow Metro Project

The Public Investment Board (PIB) has granted approval for the East-West Corridor of the Lucknow Metro, with an estimated project cost of ₹5,801 crore. This corridor, part of Phase 1B of the metro project, will cover a distance of 11.165 km, stretching between Charbagh and Vasantkunj.The decision was made during a PIB meeting held in Delhi in the first week of May, which was chaired by the Union Finance Secretary. The approval followed the clearance of the detailed project report (DPR) by the Uttar Pradesh government in March 2024. Subsequently, the Network Planning Group (NPG) provided the ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?