Panchshil Realty en­ters ware­hous­ing

HT Estates - - FRONT PAGE - Bidya Sa­pam [email protected]

MUM­BAI: Black­stone Group­backed Pan­shchil Realty has en­tered the ware­hous­ing and lo­gis­tics busi­ness, as part of a larger plan to fo­cus solely on com­mer­cial real es­tate de­vel­op­ment.

The Pune-based de­vel­oper, which had built the first Trump Tow­ers in In­dia, has formed a sep­a­rate ver­ti­cal, Frac­tion In­dus­trial Parks, which will set up ware­houses and lo­gis­tics fa­cil­i­ties. It plans to com­pletely exit the res­i­den­tial space in the next two years.

Un­der the new plat­form, Panchshil plans to build 2 mil­lion sq. ft of ware­hous­ing and light in­dus­trial space, said chair­man Atul Chor­dia. “So far, we are build­ing the busi­ness (in­dus­trial park) on our own. If we re­quire eq­uity we will look for part­ner­ship.”

The com­pany has bought 400,000 mil­lion sqft of in­dus­trial as­sets at Pune-Na­gar road to start its first ware­hous­ing park. It has also ac­quired 55 acres at Mum­bai’sBhi­wan­di­area, where it plans to build a 1 mil­lion sq. ft ware­hous­ing fa­cil­ity.

“We are still ac­quir­ing more land in th­ese places. Both fa­cil­i­ties will be op­er­a­tional by 2020. We are in the process of leas­ing out to po­ten­tial in­dus­trial and ware­hous­ing clients,” Chor­dia added.

Pan­shchil’s en­try into the ware­hous­ing busi­ness comes at a time when sev­eral other big de­vel­op­ers, in­clud­ing Hi­ranan­dani Com­mu­ni­ties and Lodha Group, are ex­plor­ing the space given the grow­ing in­ter­est from pri­vate eq­uity in­vestors.

Ac­cord­ing to a 25 June re­port by prop­erty con­sul­tant JLL In­dia, ware­hous­ing space is ex­pected to grow by 112% to 297 mil­lion sq. ft by end-2021.

Along with pri­vate eq­uity in­vest­ment firm Black­stone Group Lp, Pan­shchil Realty cur­rently own­san­d­op­er­ate­saround 18 mil­lion sq. ft of com­mer­cial space, in­clud­ing of­fice build­ings and in­for­ma­tion tech­nol­ogy parks in Pune. An­other 8 mil­lion sq. ft is in the pipe­line. Be­sides, Pan­shchil owns 1,250 ho­tel rooms op­er­ated un­der global brands such as JW Mar­riott and The Ritz-Carl­ton. It plans to add an­other 400 rooms by the end of this year.

“We have made a strate­gic de­ci­sion that we will fo­cus more on com­mer­cial of­fice and ho­tel. Go­ing for­ward we will only be a com­mer­cial de­vel­oper and op­er­ate un­der the lease model,” Chor­dia.

The com­pany’s res­i­den­tial busi­ness cur­rently ac­counts for 10-15% of its to­tal rev­enue. Four res­i­den­tial projects, in­clud­ing Eon Water­front and Pan­shchil Tow­ers in Pune, are un­der con­struc­tion.

“All our hous­ing projects are in com­ple­tion stage. In the next one-two years, th­ese projects will be com­pleted and handed over. We do not plan to take any fur­ther res­i­den­tial projects af­ter that.”

THE PUNE­BASED DE­VEL­OPER, WHICH HAD BUILT THE FIRST TRUMP TOW­ERS IN IN­DIA, HAS FORMED A SEP­A­RATE VER­TI­CAL TO SET UP WARE­HOUSES

FILE/HT

Panchshil plans to build 2 mil­lion sq. ft of ware­hous­ing

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