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

Indian REITs Offer 6-7.5 per cent Yield, Surpassing Many Global Markets

Indian Real Estate Investment Trusts (REITs) are delivering average yields of 6–7.5 per cent for unitholders, outperforming many mature markets, including the US, according to a report by Credai and Anarock.Credai, the apex body of Indian real estate developers, and property consultant Anarock released the report Indian REITs – A Gateway to Institutional Real Estate at an event in India.Currently, India has five listed REITs – Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and Knowledge Realty Trust. Nexus Select Trust pr..

Next Story
Infrastructure Energy

Insolation Energy Wins 226 MW Solar Projects Under PM-KUSUM

Insolation Energy on Monday announced securing multiple solar projects totalling 226.45 MW, with an investment of Rs 7.5 billion, under the PM-KUSUM scheme. The orders were awarded to its wholly-owned subsidiary, Insolation Green Energy Pvt Ltd, by Jaipur Vidyut Vitran Nigam Limited for 20 sites and Ajmer Vidyut Vitran Nigam Limited for 115 sites, the company informed the exchanges.“The combined SPV solar power plants will total 226.45 MW under PM-KUSUM Component A, with the final levelised tariff at Rs 3.04 per unit for 16 sites, Rs 2.82 per unit for 5 sites, Rs 2.75 per unit for 53 sites, ..

Next Story
Infrastructure Energy

Numaligarh Refinery Awards EPC Contract for Rooftop Solar Projects

State-owned Numaligarh Refinery Ltd. (NRL) has awarded a Letter of Award to Solarium Green Energy Ltd. for the rate contract covering the Engineering, Procurement, and Construction (EPC) of grid-connected rooftop solar PV projects at various locations. The projects fall within the categories of 51–200 kW and 201–1000 kW. Notable projects include a 140 kW rooftop solar plant at NRL Assam, a 760 kW plant at NRL Assam, and a 280 kW plant at NRL West Bengal.The supply order covers ex-manufacturing works and the dispatch price for plant and equipment for the 140 kW, 760 kW, and 280 kW rooftop s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?