IndoSpace sells 2.5 mn sqft warehousing space to Alta Capital for $100 mn

The warehousing assets sold by IndoSpace to Alta Capital are located in Pune and Sri City

Warehousing firm IndoSpace has announced that it has sold 2.5 million square feet of fully built and leased warehousing space to Alta Capital for around $100 million. Alta Capital is the Indian operating partner of Singaporean asset management firm Hillhouse Investments, and this transaction represents the second "core" deal made by the company in the warehousing space.

Avendus Capital acted as IndoSpace's sole financial advisor to the deal. In a release, Avendus said that the warehousing assets that are part of the deal are located at Pune in Maharashtra, and at Sri City in Andhra Pradesh. The assets have been leased out to a range of manufacturing, e-commerce, and third-party logistics players, the release added.

“Alta Capital’s acquisition reflects the sustained interest of global investors in India’s industrial warehousing and logistics sector, further underscoring Avendus’ market leadership in this space. We ran a tight process which attracted participation not only from a clutch of global strategic and financial investors but also from select family offices and wealth management firms," said Prateek Jhawar, managing director and head of infrastructure and real assets investment banking at Avendus Capital.

Backed by investors such as CPPIB and GLP, IndoSpace has also received investments from Qatar Investment Authority and IFC, among others, according to data from analytics firm Tracxn. IndoSpace has a portfolio of 58 million square feet, located across 11 cities and more than 50 logistics parks. On the other hand, Alta Capital has expressed a target of growing its warehousing portfolio to more than 11 million square feet.

Like Alta Capital, private equity firms have lined up significant investments in the logistics and warehousing space this year. Earlier in 2024, Abu Dhabi Investment Authority (ADIA) and KKR invested nearly Rs 13,000 crore in Reliance Retail Ventures' warehousing assets. In September, Blackstone-owned Horizon Business Parks agreed to invest Rs 700 crore to upgrade and operate Central Warehousing Corporation's assets on a design-build-finance-operate-transfer basis.

Blackstone has also collaborated with Indian investors in the space, such as the Hiranandani Group, with their joint venture Greenbase Industrial and Logistics Parks expanding their play in cities such as Chennai, and have been actively scouting other locations, such as Bhiwandi and Pune.