IndoSpace plans to double its industrial real estate and logistics parks portfolio to 58 mn sq ft by 2028

According to IndoSpace, it will keep deepening its presence in its existing 11 markets like Rajpura, Delhi/NCR, Ahmedabad, Mumbai, Pune, Bengaluru etc.

Buoyed by rising demand being experienced by the e-commerce and manufacturing sectors, private equity major Everstone Group-backed industrial real estate and logistics parks developer IndoSpace has invested close to $3 billion, through a mix of equity and debt, in assets under management across its investment vehicles in India.

Over the next three years, the company will be constructing an additional 22 million sq ft across the country and will deploy approximately $1 billion on new acquisitions, said Rajesh Jaggi, vice chairman, Real Estate, Everstone Group.

The company currently has an operational portfolio of 30 million sq ft of 33 percent industrial and 67 percent warehousing properties across the country up and running. It plans to almost double this to 58 million sq ft in the next two to five years, he said.

While 6 million sq ft is under construction, the company plans to construct another 22 million sq ft in the next two to five years, he added.

“Industrial storage is a big market in India. Currently, we are at 33 percent industrial and 67 percent warehousing for our current operational portfolio,” he added.

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Jaggi said that while the company has so far acquired over 2,000 acres across the country, land acquisition is a major challenge.

“We own land where we have the potential of taking it to 58 million sq ft. We have raised the fourth fund, which is a $600 million fund and achieved the second close at $400 million. Through ILP IV we will further increase our portfolio to a 100 million sq ft in five years.”

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The firm has raised its fourth development vehicle, IndoSpace Logistics Parks IV (ILP IV), with a target fund size of $600 million. The Canada Pension Plan Investment Board (CPP Investments) has invested more than $205 million as an anchor investor in this new fund, taking the CPP Investments and IndoSpace’s partnership to over $1 billion in assets.

He said that while the demand for warehousing before COVID-19 was restricted to auto manufacturing, it has now expanded to solar, electric vehicles, electronics and semiconductors.

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“With our recent fundraising efforts, our objective is to augment the IndoSpace portfolio within the next three to four years. The fund will focus on India’s largest logistics real estate markets Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune,” he said.

Keeping that in mind, IndoSpace will keep deepening its presence in its existing 11 markets (Rajpura, Delhi/NCR, Ahmedabad, Mumbai, Pune, Bengaluru, Coimbatore, Chennai, Sri City, Anantapur and Hyderabad) and target expansion into the top eight tier-I markets over the next three years, he said.

IndoSpace has a national network of 51 logistics parks with 58 million square feet delivered/under development across 11 cities.