IndoSpace plans rigorous expansion
With a strong pipeline of projects, IndoSpace plans to invest in the West, North and South, while also exploring opportunities in the East of India. Rajesh Jaggi, Managing Partner – Real Estate, Everstone Group, talks about the vision of the company to support the growth and modernisation of India’s supply chain.
IndoSpace made headlines after acquiring Orris’ logistics park near Gurugram. Please tell us about this investment.
This park - IndoSpace Luhari III - is close to the Delhi-Jaipur highway and spread across 67 acres. The site is within proximity of several large industrial clusters such as IMT Manesar, Dharuhera,
and Bhiwadi. Good regional connectivity makes the site an ideal location for auto majors and auto component manufacturers, third party logistics services (3PLs), consumer goods companies, and retailers to establish their distribution centres to service various parts of northern India. We currently have two operational parks in Luhari (Luhari I and Luhari II), spread across a combined area of 66 acres and catering to the key markets in North India. With the new addition, IndoSpace will double its acreage in Luhari.
What is the company’s strategy behind investments in logistics parks?
Our strategy consists of both approaches - build and buy - under which we explore investment opportunities across Greenfield and brownfield assets. We have around 31 million sqft (2.9 million sq. mt.) of fully-developed and stable leased assets, and brownfield construction. We have an active development pipeline and target of achieving 10 million sqft of logistics space in each of the three regions North, South and West - while actively exploring expansion opportunities in the East. Our overall aim is to build a pipeline of 120 million sqft of modern logistics infrastructure. IndoSpace is also focused on the development of sustainable industrial and logistics parks in India by adopting sustainable technology and environmentally friendly materials. Adopting various Green initiatives, such as the Environmental & Social Governance (ESG) norms, IndoSpace parks also have the esteemed EDGE rating from GBCI (Green Business Certification). This rating means the buildings possess several Green achievements for a reduced carbon footprint.
How has the journey of transforming industrial real estate been so far?
With the start of the millennium, large multinationals were keen on setting up shop for manufacturing or distribution in India, but were facing challenges finding warehousing and manufacturing spaces of worldclass quality and the quantity they were used to. Spotting this trend early, IndoSpace started developing assets to meet this need. To leverage its first-mover advantage, the main task was to acquire strategically
We have an active development pipeline and target of achieving 10 mn sqft of logistics space in the North, South, and West
located land parcels in an efficient and transparent manner, and in coordination with the local people. From our first land purchase in Chakan (Pune) to our latest park in Rajpura (Chandigarh), we have come a long way. IndoSpace now has strategic land locations, which means that its industrial parks are well-connected to urban hubs, railways, airports, and ports. IndoSpace is a partner to various national as well as multinational names such as IKEA, Amazon, DHL, Caterpillar, Bosch, Steelcase, and Delhivery. Our reach allows clients to work with a single development partner for all supply chain facility needs. Last September, we formed a strategic long-term partnership with GLP. Through this partnership, GLP has become an investor in IndoSpace Core, a joint venture established in 2017 by IndoSpace and the Canada Pension Plan Investment Board (CPPIB) that is focused on acquiring and developing modern logistics facilities in India. IndoSpace also closed its third fund last year. In addition, Everstone Group and GLP have partnered to invest around $500 million in strategies and technologies to enhance logistics efficiency in India. The partnership enables IndoSpace to leverage GLP’s fund management, development and operational expertise and resources, as well as GLP’s extensive global customer network to further strengthen the former’s leadership position in India.