IndoSpace, GLP form joint venture to co-invest in infrastructure
MUMBAI: Private equity firm Everstone Group-backed industrial real estate company IndoSpace and modern logistics and technology-led solutions provider GLP have entered into a longterm strategic partnership.
As part of the joint venture (JV), GLP will co-invest in IndoSpace’s managed investment vehicles, the companies said in a joint statement on Su nd ay.GLP’ s real estate platform is one of the largest in the world, spanning about 700 million square feet. Through this partnership, GLP will also become an investor in IndoSpace Core, a joint venture established in 2017 by IndoSpace and Canada Pension Plan Investment Board (CPPIB), which is focused on acquiring and developing modern logistics facilities in India. C PP IB had initially committed $500 million and owns a significant majority stake in to IndoSpace Core. “GLP, the best and largest global name in our business, has entered India and is exclusively with us. It is a partnership for the long-term and a strong venture wherein In doSpace will be re branded with the tagline: A GLP Joint Venture” said Same e rS ain,c o-founder and chief executive officer (CEO), Everstone Group. Sain, who is also one of the co-founders of IndoSpace, declined to divulge further details, including the quantum of investment. IndoSpace is a joint venture between private equity firm Everstone Capital and US-based Realterm Group. The JV will also enable In do Space tol ever ageGLP’ s fund management, development and operational expertise and resources, as well as its extensive global customer network .“They are the global leader in the logistics space. GLP’s expertise, scale, technology and global relationships will give us a massive advantage and enable us to deliver significant value to our customers and investors ,” added Sain. IndoSpace plans to build a pipeline of120million squarefeet of modern logistics infrastructure. It currently has 12 million sq. ft of fullydeveloped and stable leased assets, with another 20 million in brown field construction, as well as a pipeline of 30 million sq. ft in India. “We have hit the hard cap of our third IndoSpace fund at $550 million. We have capital and with the enhanced tech- ni cal wherewithal of G LP, we can just do so much more. We will look at expanding our capabilities and also look at cargos, airports, etc.” IndoSpace has raised $584 million across two industrial real estate funds. The first, IndoSpace Logistics Parks I, had raised $240 million in 2009. IndoSpace Logistics Parks II had raised $344 million in 2014. Currently, IndoSpace’s portfolio includes 28 logistics and industrial parks across the country. Its keytenantsincludeAmazon.com Inc ., Nissan Motor Co ., DH L Supply Chain India Pvt. Ltd, Pepsi Co India Holdings Pvt. Ltd and the Bosch Group.
G LP with $50 billion in AU Min realty and PE, own sand operates 667 million sq ft. It has 2,900 completed properties in 1,200 logistics parks globally. It has struck similar partnerships. For instance, in 2017, it had entered Europe with the acquisition of Gazeley, a premier developer, investor and manager of logistics ware houses and distribution parks.
“This partnership is strategic and mutually beneficial. IndoSpace is an experienced partner which shares similar values and culture as GLP,” said Ming Mei, co-founder and CEO, GLP.
GLP will coinvest in IndoSpace’s managed investment vehicles.