Logistics Sector Thriving: Everstone-Backed IndoSpace To Invest $1 Billion In Warehousing Assets In India

IndoSpace, a developer of industrial real estate and logistics parks, backed by Everstone Group, is planning to invest more than $1 billion in India's expanding logistics industry.

The firm aims to acquire warehousing and logistics assets throughout India in the coming two to three years.

This move comes in response to increasing demand driven by enhanced connectivity and favourable government policies, according to reports.

Rajesh Jaggi, vice chairman-real estate, Everstone Group, stated, “With the improved connectivity and recent government initiatives, we believe that modern, large, best-in-class logistics and grade A industrial warehousing facilities will continue to be in demand. The booming e-commerce sector and evolving consumption patterns are driving demand for modern logistics and quality warehousing facilities.”

Additionally, according to him, the rapid rebound of the manufacturing sector, fuelled by electronics and automotive industries, including electric vehicles, are generating strong rental growth across multiple markets in India, reports Economic Times.

The joint venture between Everstone, Singapore headquartered logistics facilities provider GLP and industrial real estate firm Realterm, will also be developing additional 30 million sq-ft warehousing properties in the country.

IndoSpace is a top investor, developer, and operator of high-quality industrial and logistics real estate in India.

The partnership involving Everstone, GLP (a logistics facilities provider based in Singapore), and Realterm (an industrial real estate company) is set to create an extra 30 million sq-ft of warehouse properties in India.

It is currently raising its fourth development vehicle IndoSpace Logistics Parks IV (ILP IV) with a target fund size of $600 million, reports ET.

ILP-IV will target key logistics markets in India like Mumbai, Delhi-NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, and Ahmedabad.

The company recently acquired the Amazon Fulfilment Centre in Hyderabad, adding 8.18 lakh sq-ft to its nationwide portfolio from GMR Group.

Fuelled by growing consumer demand and increasing manufacturing investments, industrial and warehousing segments have emerged as high-growth real estate asset classes.

The government's National Logistics Policy is also expected to further enhance investments in this sector.