Singapore-based property investor and developer Ascendas-Singbridge Group is setting up a joint venture (JV) with industrial properties developer Firstspace Realty for building logistics and industrial facilities in the country.
Over five to six years, the JV plans to develop close to 15 million sq ft of space, and invest $600 million (Rs 3,800 crore) to develop new centres and tap demand from verticals such as third-party logistics, e-commerce, automobiles, fast-moving consumer goods, modern retail and manufacturing in the country, said Aloke Bhuniya, chief executive of the Ascendas-Firstspace platform. Firstspace is founded by Bhuniya, who was managing director of IndoSpace Capital Advisors, the country’s first institutional industrial real estate developer. The JV will develop centres of 550,000 sq ft to 3 million sq ft.
The JV will invest in projects aimed at the development of logistics and factory spaces in Mumbai, National Capital Region (NCR), Pune, Chennai, Bengaluru and Ahmedabad, and top warehousing and manufacturing hubs in the country.
Logistics and industrial spaces have seen a surge in joint-venture activities.
The JV is getting formed a couple of months after IndoSpace signed a $1.3-billion deal with Canada Pension Plan Investment Board.
UK’s Standard Chartered Private Equity is also in talks with an Indian company to set up a Rs 1,900-crore JV to build warehousing and industrial spaces.
Bengaluru-based Embassy group has formed a JV with Warburg Pincus to set up warehousing facilities.
Ascendas-Singbridge Group chief executive Miguel Ko said: “We have been in India for over two decades, developing iconic business and information technology parks. We are a trusted brand with renowned operational capabilities and loyal client base. Entering the industrial and logistics sector is a natural progression, and we expect to meet the growing demand for quality manufacturing and logistics space. We have assembled an entrepreneurial team to lead the way, which will be supported by our India and global operations.”
Source: Business-Standard