Therise of in­dus­trial realty

UP­WARD TRA­JEC­TORY De­vel­op­ers and in­vestors rush to buy land across states for in­dus­trial and lo­gis­tics parks in or­der to take ad­van­tage of the in­creas­ing con­sump­tion and the e­com­merce story

HT Estates - - FRONT PAGE - Mad­hurima Nandy mad­hurima.n@livemint.com

BEN­GALURU: In­dus­trial real es­tate is fast emerg­ing as the go-to as­set class for in­vestors and de­vel­op­ers, as de­mand for spe­cial eco­nomic zones (SEZ) wanes and In­dia’s con­sump­tion and e-com­merce story gets a boost from the gov­ern­ment’s Make in In­dia ini­tia­tive and the goods and ser­vices tax (GST).

In a bid to build in­dus­trial, lo­gis­tics and ware­hous­ing parks, in­dus­trial clus­ters and town­ships, there is a rush to buy land across states, some­thing that hasn’t hap­pened since the SEZ frenzy more than a decade ago. The ware­hous­ing and lo­gis­tics sec­tor, which at­tracted in­vest­ments of more than a bil­lion dol­lars in 2017, is gear­ing up for the next round which is ex­pected to wit­ness higher in­ter­est in build­ing busi­nesses around steady rental in­come.

At t he t op of t he l i st i s Canada’s Brook­field As­set Man­age­ment Inc., which has in­vested in res­i­den­tial and com­mer­cial of­fice real es­tate and is now eval­u­at­ing op­por­tu­ni­ties in the in­dus­trial space.

“Brook­field is look­ing to in­vest in lo­gis­tics parks. It may in­vest in a com­pany or buy the fa­cil­ity or park it­self,” said a per­son fa­mil­iar with the com­pany’s plans, who did not wish to be named.

A Brook­field spokesper­son de­clined to com­ment.

Scout­ing for land is on in west­ernIn­dia, in­clud­ing Mum­ba­iand Pune, as well as in the na­tional cap­i­tal re­gion (NCR), Gu­jarat, Chen­nai and Ben­galuru. Syd­ney’s LOGOS Group and As­setz Prop­erty Group from Sin­ga­pore, which part­nered in 2017 to in­vest $400 mil­lion to build lo­gis­tics and in­dus­trial parks in In­dia, is shop­ping for land.

Ben Sal­mon, co-founder and chief ex­ec­u­tive of­fi­cer of As­setz Prop­erty Group, said they are plan­ning to close at least three or

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