+
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
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?