Everstone-backed IndoSpace commits $1 billion to fuel India's logistics sector growth

IndoSpace, a prominent player in the industrial real estate and logistics parks sector, is set to make a significant investment of over $1 billion for acquiring new warehousing and logistics assets across India within the next two to three years. This move is attributed to the growing demand observed in the sector, driven by improved connectivity and favorable government policies.

Backed by private equity firm Everstone Group, IndoSpace aims to tap into the flourishing demand for modern logistics and high-quality warehousing facilities. The Vice Chairman of Real Estate at Everstone Group, Rajesh Jaggi, highlighted the surge in demand, particularly due to the thriving e-commerce sector and evolving consumption patterns.

IndoSpace operates through a joint venture involving Everstone, Singapore-based logistics facilities provider GLP, and industrial real estate firm Realterm. Together, they also have plans to develop an additional 30 million square feet of warehousing properties in India.

The resurgence of the manufacturing sector, propelled by industries such as electronics, automotive, and electric vehicles, has further boosted the need for rental spaces across various Indian markets, according to Jaggi.

IndoSpace, already a substantial investor, developer, and operator in the Indian industrial and logistics real estate landscape, boasts an impressive network of 52 logistics parks spanning 58 million square feet. The company intends to strengthen its presence in the existing 11 markets while also venturing into the top eight tier-I markets over the next three years.

With ongoing fundraising efforts for IndoSpace Logistics Parks IV (ILP IV), targeting a fund size of $600 million, the company has garnered more than $205 million from the Canada Pension Plan Investment Board. This collaboration has propelled the partnership's total assets to surpass $1 billion.

The expansion strategy is underlined by IndoSpace's recent acquisition of an Amazon Fulfillment Centre in Hyderabad, an 8.18 lakh-square-foot grade A warehousing asset. This move not only enlarges the company's nationwide portfolio but also cements its strong tenant relationship in the southern city.

The growing consumer demands and escalating investments in manufacturing are propelling the demand for industrial and warehousing spaces. The Indian government's recent announcement of the National Logistics Policy is anticipated to further stimulate investments in this sector.

Market projections indicate a substantial need for around $13 billion in funding for new warehousing capacity development in India over the next ten years, driven by aggressive expansion in e-commerce and third-party logistics (3PL) companies.

Considering this market potential, establishing a robust warehousing and logistics infrastructure meeting global standards has the potential to attract significant investments, contributing to increased commerce and enhancing regional competitiveness.

IndoSpace, a prominent player in the industrial real estate and logistics parks sector, is set to make a significant investment of over $1 billion for acquiring new warehousing and logistics assets across India within the next two to three years. This move is attributed to the growing demand observed in the sector, driven by improved connectivity and favorable government policies.

Backed by private equity firm Everstone Group, IndoSpace aims to tap into the flourishing demand for modern logistics and high-quality warehousing facilities. The Vice Chairman of Real Estate at Everstone Group, Rajesh Jaggi, highlighted the surge in demand, particularly due to the thriving e-commerce sector and evolving consumption patterns.

IndoSpace operates through a joint venture involving Everstone, Singapore-based logistics facilities provider GLP, and industrial real estate firm Realterm. Together, they also have plans to develop an additional 30 million square feet of warehousing properties in India.

The resurgence of the manufacturing sector, propelled by industries such as electronics, automotive, and electric vehicles, has further boosted the need for rental spaces across various Indian markets, according to Jaggi.

IndoSpace, already a substantial investor, developer, and operator in the Indian industrial and logistics real estate landscape, boasts an impressive network of 52 logistics parks spanning 58 million square feet. The company intends to strengthen its presence in the existing 11 markets while also venturing into the top eight tier-I markets over the next three years.

With ongoing fundraising efforts for IndoSpace Logistics Parks IV (ILP IV), targeting a fund size of $600 million, the company has garnered more than $205 million from the Canada Pension Plan Investment Board. This collaboration has propelled the partnership's total assets to surpass $1 billion.

The expansion strategy is underlined by IndoSpace's recent acquisition of an Amazon Fulfillment Centre in Hyderabad, an 8.18 lakh-square-foot grade A warehousing asset. This move not only enlarges the company's nationwide portfolio but also cements its strong tenant relationship in the southern city.

The growing consumer demands and escalating investments in manufacturing are propelling the demand for industrial and warehousing spaces. The Indian government's recent announcement of the National Logistics Policy is anticipated to further stimulate investments in this sector.

Market projections indicate a substantial need for around $13 billion in funding for new warehousing capacity development in India over the next ten years, driven by aggressive expansion in e-commerce and third-party logistics (3PL) companies.

Considering this market potential, establishing a robust warehousing and logistics infrastructure meeting global standards has the potential to attract significant investments, contributing to increased commerce and enhancing regional competitiveness.