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
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