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
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?