Developer and manager of Grade A industrial real estate and logistics parks, IndoSpace, on March 10, announced the acquisition of 55 acres at Farukhnagar in Haryana, in a joint venture with Model Economic Township Limited (METL), a 100% subsidiary of Reliance Industries Limited to develop a warehousing facility.
The amount invested has not been disclosed.
The Farukhnagar micro-market has grown exponentially over the last few years and has emerged as a major warehousing and industrial destination in the Delhi NCR. Farukhnagar is close to Gurugram and other major manufacturing and consumption centers, and has fully developed social and physical infrastructure. This proposed development will meet the rising demand in Delhi-NCR for world-class Grade A warehousing space from 3PL, FMCG, and e-commerce sectors.
The warehousing facility has a development potential of 1.28 million sq ft. With this, IndoSpace has expanded its footprint in Delhi-NCR to over 480 acres across eight parks.
The partnership reiterates the strong association between IndoSpace and Model Economic Township Limited. In 2017, IndoSpace acquired 140 acres from METL in Badli, Haryana. The latest acquisition strengthens the relationship, the company said.
“We are excited to enter one of the fastest growing industrial zones in partnership with METL as we continue to evaluate opportunities across the country. METL’s expertise in developing large-scale industrial infrastructure in this micro-market will add significant value to this partnership. This project highlights IndoSpace’s focus on supporting the growth of India’s logistics sector, which will continue to expand robustly due to improved warehousing infrastructure,” said Rajesh Jaggi, Vice-Chairman – Real Estate, Everstone Group.
“We are happy to partner with IndoSpace to develop this world-class facility. This project is testimony to our pioneering efforts to attract world-class companies through best-in-class infrastructure and establish primacy of METL in the industrial and logistics map of Delhi NCR,” said Shrivallabh Goyal, Whole-Time Director and CEO, METL.
The logistics and industrial real estate sector has shown growth in the Delhi NCR region. The partnerships between IndoSpace and METL will contribute significantly to the transformation of the sector.
The partnership will benefit IndoSpace’s regional presence and strengthen its investment strategy. This will enable IndoSpace to focus on completing multiple due diligence processes parallelly and in a timebound manner, the company said in a statement.
Adding to its pan-India presence, the acquisition will help IndoSpace grow its footprint strategically across this region while attaining its long-term goal of 120 million square feet of modern logistics infrastructure across India. IndoSpace has a portfolio of over 41 million square feet across 39 industrial and logistics parks under various stages of development in nine major consumption hubs in India, it said.
IndoSpace is an investor, developer and manager of Grade A industrial and logistics real estate in India and has taken total commitment to India to above $3.2 billion. It is promoted by Everstone Group, GLP and Realterm.
METL is a 100% subsidiary of Reliance Industries Limited (RIL) is engaged in the development of integrated industrial township near New Delhi. It is located around 50 kms from Delhi International Airport and close to the commercial and industrial hubs of Gurugram and Manesar, in Jhajjar dist. of Haryana state.
A recent report by JLL has said that despite unfavourable socio-economic environment, warehousing stock in top 8 cities has added 27 million sq. ft to reach a total of 238 million sq. ft. in 2020 and demand is expected to grow around 160% to reach 35 million sq. ft in 2021 provided external conditions stay stable.
This is supported by growing demand in sectors such as 3PL (Third Party Logistics) and e-commerce. 3PL has become one of the fastest growing segments in the warehousing space, contributing nearly 35% of total net absorption in 2020, highest among all the other sectors. Likewise, many e-commerce categories are expected to do very well, as consumers are making a behavioral shift from buying offline to online, said the report titled India Real Estate Outlook – A new growth cycle by JLL.
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