In­doS­pace, GLP form JV to co-in­vest in in­fra sec­tor

HT Estates - - FRONT PAGE - Shrija Agrawal shrija.a@htlive.com

MUMBAI: Pri­va­tee­quity­fir­mEver­stone 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 state­men­tonSun­day. 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 byIn­doS­pace andCanadaPen­sionPlanIn­vest­ment Board (CPPIB), which is fo­cused on ac­quir­ing and de­vel­op­ing mod­ern lo­gis­tics fa­cil­i­ties in In­dia. CPPIBha­dini­tial­ly­commit­ted $500 mil­lion and owns a sig­nif­i­cant ma­jor­ity stake in to In­doS­pace Core. “GLP, the best and largest global name in our busi­ness, hasen­teredIn­di­aan­dis ex­clu­sively with us. It is a part­ner­ship for the long-term and a strong ven­ture wherein In­doS­pace will be re­brand­ed­with­the tagline: A GLP Joint Ven­ture” said SameerSain, co-founderand 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 In­doS­pace to lever­age GLP’s fund man­age­ment, de­vel­op­ment and op­er­a­tional­ex­per­tise­an­dresources, as well as its ex­ten­sive global cus­tomer­net­work.“The­yarethe 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 cus­tom­er­sand­in­vestors,” added Sain. In­doS­pace plans to build a pipeline of 120 mil­lion squarefeet of mod­ern lo­gis­tics in­fra­struc­ture. It cur­rently has 12 mil­lion sq. ft of fully de­vel­ope­dand­stable leasedas­sets, with­an­oth­er20mil­lion in brown­field con­struc­tion, as well as a pipeline of 30 mil­lion sq. ft in In­dia. “We have hit the hard cap of our third In­doS­pace fun­dat$550mil­lion. We­have­cap­i­tal and with the en­hanced tech­ni­cal where­with­alofGLP, we­can just do so much more. We will look at ex­pand­ing our ca­pa­bil­i­ties and also look at car­gos, air­ports, etc.” In­doS­pace­has­raised $584mil­lionacrosst­woin­dus­trial 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 park­sacross­the­coun­try. Its key­tenantsin­cludeA­ma­zon.com Inc., Nis­sanMo­torCo., DHLSup­ply ChainIn­di­aPvt. Ltd, Pep­siCo In­dia Hold­ings Pvt. Ltd and the Bosch Group.

GLPwith$50bil­lion in AUMin re­alty andPE, own­san­d­op­er­ates 667 mil­lion sq ft. It has 2,900 com­pleted prop­er­ties in 1,200 lo­gis­tics parks­glob­ally. It has­struck­sim­i­lar part­ner­ships. Forin­stance, in 2017, it had en­tered Europe with the ac­qui­si­tion of Gaze­ley, a premier de­vel­oper, in­vestor and man­ageroflo­gis­tics ware­houses and dis­tri­bu­tion parks.

“This part­ner­ship is highly strate­gic and mu­tu­ally ben­e­fi­cial. In­doS­paceisan­ex­pe­ri­enced part­ner­whichsha­res­sim­i­lar­val­ues and cul­ture as GLP. It pro­vides us with im­me­di­ate scale to cap­i­tal­ize on­theear­ly­growth­stages of In­dia’s rapidly mod­ern­iz­ing lo­gis­tics land­scape and fur­ther ex­pandour­l­ogis­tics ecosys­tem,” said Ming Mei, co-founder and CEO, GLP. Ac­cord­ing to a 2018 re­port byrealestate con­sult­ing firm Knight Frank, gov­ern­ment ini­tia­tives have pro­vided strong tail­winds to the In­dian ware­housin­gand­l­o­gis­tic­s­sec­tor.

“The gov­ern­ment’s thrust to the sec­tor such as giv­ing in­fra­struc­ture sta­tus to the lo­gis­tics sec­tor, the ‘Make in In­dia’ pro­gramme, de­vel­op­ment of mul­ti­modal trans­port net­works and ini­tia­tives to set upin­dus­tri­al­cor­ri­dors like Delhi Mumbai In­dus­trial Cor­ri­dor (DMIC), Delhi Kolkata In­dus­trial Cor­ri­dor and lo­gis­tics park­shave­pro­pelledthe cause,” the re­port said.

Emer­gence­ofex­itroutes, such as real es­tate in­vest­ment trusts (REITs), are also ma­jor steps to­wards at­tract­ing more in­sti­tu­tional cap­i­tal for the­sec­tor. “Cur­rently, the mar­ket for REITs in In­dia is at a very nascent stage and it would take time to evolve. Once the mar­ket for REITs ma­tures, in­sti­tu­tional in­vestors will be able to get a cred­i­ble exit av­enue to gain from their ware­hous­ing in­vest­ments by list­ing their ware­hous­ing as­sets through REITs,” the Knight Frank re­port added. As per the Eco­nomic Sur­vey 2017-18, the In­di­an­l­o­gis­tics sec­tor is ex­pected to touch$215 bil­lion by2020, from the cur­rent $160 bil­lion. The ware­hous­ing and­l­o­gis­tics space has wit­nessed a host of deals in re­cent times. Last year, lo­gis­tics in­vest­ment and de­vel­op­ment fir­mLOGOSIn­di­a­hadraised$400 mil­lion fromI­van­hoéCam­bridge andVan­cou­ver-basedQuadReal Prop­erty Group. LO­GOS In­dia seek­stode­vel­opandown­mod­ern lo­gis­tics fa­cil­i­ties across ma­jor cities, in­clud­ing Mumbai, Pune, Chen­nai, the Na­tional Cap­i­tal Re­gion ( NCR), Ben­galuru, Hy­der­abad and Ahmed­abad.

Sin­ga­pore-based As­cen­dasSing­bridge Group had an­nounced a joint ven­ture with re­alty firm Firstspace Re­alty to en­ter the in­dus­trial lo­gis­tics and ware­hous­ing mar­ket with an in­vest­ment of $600 mil­lion over the next 5-6 years to de­velop around 15 mil­lion sq. ft of space.

GLP will co­in­vest in In­doS­pace’s man­aged in­vest­ment ve­hi­cles

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