Do investors prefer new warehouse developments or completed projects?
WAREHOUSING & LOGISTICS

Do investors prefer new warehouse developments or completed projects?

Major investors in the warehousing space include Ivanhoé Cambridge and QuadReal Property Group, Ascendas Firstspace, Warburg Pincus, Canada Pension Plan Investment Board (CPPIB), Everstone Capital Management, Brookfield, DHL India and Allcargo Logistics, among others.

The tapping of warehouse space depends on investment appetite and horizon. “While new developments are being preferred by investors for a shorter horizon, many major institutional funds are exploring developments with a mix of completed projects with standard and quality design, facility and operational easiness as well as a land bank for future developments,” observes Chandranath Dey, Senior Director and Head - Industrial Consulting and Supply Chain Consulting, JLL India. Apart from these two types of developments of stabilised assets and a mix of land and stabilised assets, some investors are also exploring land-only options for the long term owing to the absence of suitable investment-grade assets at present, he adds.

Embassy Group is agnostic towards investing in new developments or completed projects as long as it makes business sense. “The criteria for considering completed projects are when they meet our minimum specification offering and are fully compliant,” adds Aditya Virwani, COO, Embassy Group.

An ICRA report states that investment platforms with good financial backing have shown their intention of growing through a mix of in-house development as well as acquisition of completed or under-construction properties. Owners of completed projects will be able to monetise their assets at good yields, whereas investment funds may see potential for further improvement in valuations through their operational strengths and asset improvements, as per the report.

SERAPHINA D’SOUZA

Major investors in the warehousing space include Ivanhoé Cambridge and QuadReal Property Group, Ascendas Firstspace, Warburg Pincus, Canada Pension Plan Investment Board (CPPIB), Everstone Capital Management, Brookfield, DHL India and Allcargo Logistics, among others. The tapping of warehouse space depends on investment appetite and horizon. “While new developments are being preferred by investors for a shorter horizon, many major institutional funds are exploring developments with a mix of completed projects with standard and quality design, facility and operational easiness as well as a land bank for future developments,” observes Chandranath Dey, Senior Director and Head - Industrial Consulting and Supply Chain Consulting, JLL India. Apart from these two types of developments of stabilised assets and a mix of land and stabilised assets, some investors are also exploring land-only options for the long term owing to the absence of suitable investment-grade assets at present, he adds. Embassy Group is agnostic towards investing in new developments or completed projects as long as it makes business sense. “The criteria for considering completed projects are when they meet our minimum specification offering and are fully compliant,” adds Aditya Virwani, COO, Embassy Group. An ICRA report states that investment platforms with good financial backing have shown their intention of growing through a mix of in-house development as well as acquisition of completed or under-construction properties. Owners of completed projects will be able to monetise their assets at good yields, whereas investment funds may see potential for further improvement in valuations through their operational strengths and asset improvements, as per the report. SERAPHINA D’SOUZA

Next Story
Technology

AI-Enabled Workflows Lift Profitability and Productivity

Organisations modernising frontline workflows with artificial intelligence, automation and real-time data are reporting stronger financial performance, higher productivity and improved employee engagement, according to a global study by Zebra Technologies and Oxford Economics.The research covered 1,000 senior leaders across retail, manufacturing, transportation and logistics in the US, Mexico, the UK, Germany, India, Japan, Australia and New Zealand.In transportation and logistics, 54 per cent of companies that improved picking and packing operations reported faster operational performance, wh..

Next Story
Real Estate

India Leads Global AI Readiness but Implementation Lags

Indian companies lead global averages across all eight artificial intelligence readiness indicators tracked by JLL, but only 19 per cent have started making changes to their workplaces, according to the JLL 2026 Future of Work Survey.The study found that 77 per cent of Indian business leaders expect AI to change their office requirements, creating a 58-percentage-point gap between awareness and implementation. The survey covered more than 2,200 CEOs, CFOs and real estate leaders across 21 countries during the first quarter of 2026.Despite concerns over automation, 58 per cent of Indian leaders..

Next Story
Equipment

Three WOLFF Cranes Build Riyadh Cable-Stayed Bridges

Three WOLFF 180 B luffing jib cranes are supporting the construction of two cable-stayed bridges alongside the existing Wadi Laban Bridge in Riyadh, Saudi Arabia. The project is being developed for the Royal Commission for Riyadh City and executed by the ICRC joint venture comprising IC Ictas and Al Rashid Trading & Contracting Company.The cranes are handling lifting operations including formwork, reinforcement, concrete placement, work platforms, surveying equipment and other construction materials. Each crane is fitted with a 40 m jib, reaches a hook height of 157 m and offers a maximum ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement