Logistics market abuzz with entry of global players, PE fund managers

Some of the world’s largest logistics players and private equity fund managers are flocking to India’s industrial and logistics hubs in the country, which has a total stock of about 350 million square feet.

Most of the players are looking to invest between $500 million to $1 billion over the next few years, experts in the sector said.

Prolgis, the world’s largest real estate developer, has hired Vineet Sekhsaria, former managing director and head of Morgan Stanley Real Estate Investing India, as the head of its India operations.

As of September last year, Prologis had spread over 1 billion square meters or had investments in real estate and development projects in 19 countries.

According to sources, Prologis has drawn up big plans for the Indian market and plans to set up large warehouses near the major industrial and commercial centers of the county.

When contacted, a Prologis spokesperson said: “Prologis is always looking at ways to grow our business and India is on track to become an important logistics market. As a leading global company, we are constantly positioning ourselves to to take advantage of emerging opportunities, including exploring new markets.”

Alta Capital, founded by Siddhartha Gupta, a former managing director of US-based fund manager Blackstone, is also considering two or three platform-level deals in the industrial and storage space, Gupta said.

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Alta Capital has a management account with a Singapore based fund.

Alta last year signed a platform deal with storage developer Pragati in which it spent $50 million and is looking to deploy $150 million more.

It also bought two warehouses from Morgan Stanley last year.

“Australia with a population of 25.9 million has 750 million sq ft of Grade A stock. India has about 350 million sq ft in the top 8 cities.”

The total stock of industrial and warehousing space in tier I cities is 300 million sq ft by the end of 2022 and is expected to reach 342 million sq ft by 2023. in 2021 to 9 per cent in 2022 and output remains flat across cities in 2022, said real estate consultant Savills India.

Recently, Mirae Asset Credit Opportunities Fund, part of Mirae Asset Investment Group, bought a Grade A pre-leased industrial property in Bhiwandi near Mumbai for Rs 130 crore. The industrial property, located in the 160-acre K-Square Integrated Industrial Park and spread over nine acres, was purchased from the Prakhyat Group.

It was Mirae Asset Investment Group’s first acquisition under its India-based fund allocation for high-grade Indian real estate opportunities.

Panattoni, one of the largest industrial property developers in the world, marked its debut in Asia by opening its first headquarters in India, located in Bengaluru, last year.

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Sandeep Chanda, India managing director, Panattoni, said: “Greater supply chain efficiency, rapid growth in e-commerce, and consolidation among third-party logistics providers are all key market drivers as India increasingly engages with its partners in the States. It shares with the United States and Europe.”

Panattoni India has introduced its transparent ‘open book’ business model of partnering with global institutional investors to deploy capital in direct investments in India’s fast-expanding industrial and warehouse market, xx said adding” Bala We aim to grow in the first eight Indian cities, and we aim to launch our first two-thirds projects by the end of 2023, with an initial investment of $200 million (€193 million ) is included.”

He said the second phase of expansion in tier-2 markets will follow. “Prior to opening our Bengaluru headquarters our first India office was in Mumbai. There are also plans to set up an office in Delhi to strengthen Panattoni’s presence in major metropolitan centres,” he added.

Shobhit Agarwal, managing director at Anarock Capital said that due to increasing demand, Grade-A warehouse assets will witness annual growth of 15-20 per cent over the next three to four years.

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“After the COVID-19 pandemic, India’s warehousing industry has gone from a sunrise sector to full supernova status. Undermining its huge growth potential in the future is a rapidly increasing demand from 3PLs and e-commerce companies, and across sectors like retail. , FMCG, manufacturing, and electronics,” he said.

Chandranath Dey, head of India – Operations & BD, Logistics and Industrial at JLL said that the warehousing investment climate in the country is showing bright and sunny days ahead due to pent-up demand/warehouse holdings keeping investor interest healthy despite a pick-up in yields.

“The unique advantage that this sector offers to investors over others is the faster construction period and thus the income and land price appreciation over time,” Dey said, adding that in the near future, it is expected made the sector see more activities on the InVit list. , AIFs and REITs in addition to platform level investment agreements.

What’s up

# Prologis recently hired Vineet Sekhsaria from Morgan Stanley as India head

# Mirae Asset bought an industrial estate in Bhiwandi near Mumbai

# Alta Capital appears to be doing several platform-level deals in the logistics space

# Panattoni plans to expand to tier II cities after major cities


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