Indospace was among the early movers to bet on India’s zero-mile city, Nagpur emerging to become one of Asia’s key logistics hubs. The storage facility developer and industrial real estate investor pledged USD 1 billion towards expanding warehousing space in India. After recently selling off a large segment of its logistics assets to Canada Pension Plan Investment Board (CPPIB), the joint private equity venture floated by Everstone Capital and Realterm Global seeks USD 550 million to constitute a fund that bets on e-commerce booms and uniform tax reforms.
The firm will leverage growing interest from sovereign and pension funds as well as university endowments to close its third fund. It’s previous two funds established an expansive portfolio of 28 logistics hubs and parks across the country. Indospace III will deepen the investor’s control of manufacturing, storage and logistics facilities across India.
A source close to the fund spoke to Economic Times, India: “The fund will continue to invest and build state-of-the-art industrial infrastructure in India. With the e-commerce boom, a spurt in logistics activities and improving manufacturing sector, we hope there would be an increasing appetite for better facilities. Global investors are actively looking at this space in India.”
Indospace has received an investment of USD 1.2 billion from CPPIB, which has further paid USD 500 million to acquire a majority stake in the firm’s logistics assets while committing another USD 700 million to the future development of those particulars. Since its inceptive fund in 2009, Indospace has deployed consolidated investments of USD 584 million through two funds targeting the establishment of global-standard, modern industrial spaces in India.
According to the rating agency, ICRA India’s logistics sector is primed to grow at 9-10% over the medium term. American business consultancy, Frost and Sullivan also noted that investments in India’s transportation and logistics-related, infrastructure are likely to accelerate as government reforms elevate the ease of doing business while soaring demand drives manufacturing.
- IndoSpace to raise $550 million for third fund, bets on e-tail boom