Category — Real Estate

Warehousing Sector Surges in India

In anticipation of the national Goods and Services Tax roll-out in July, warehousing facilities will increase by 18 percent to 132.5 million sq ft, and this sector is likely to see investments of about $700 million, according to industry experts

Delhi-NCR had the maximum warehousing stock in 2016 at 29.3 million sq ft, followed by the Mumbai Metropolitan Region, Bangalore, Pune, Chennai  Kolkata, Hyderabad, and Ahmedabad.

A warehouse

Ramesh Nair, CEO, JLL India, told BusinessLine that in 2016, the Grade A and B warehousing stock touched 111.9 million sq ft from 96.8 million sq ft in 2015, and that the GST roll out will “up-grade warehousing infrastructure.”

According to Nair, Pune and Chennai lead the way in Grade A and B warehouse rentals due to their proximity to manufacturing hubs, and local market dynamics.

 

May 30, 2017   No Comments

CPPIB to Form JV with India’s IndoSpace Realty

Canada Pension Plan Investment Board (CPPIB) plans to invest up to $1.2 billion in a joint venture with Mumbai-based IndoSpace, an industrial real estate-focused investment firm jointly owned by private equity investor Everstone Capital and Maryland-based Realterm Global.

Key Highlights:

  • Canada Pension Plan Investment Board and IndoSpace form IndoSpace Core, a joint venture that will focus on acquiring modern logistics facilities in India.
  • CPPIB has initially committed approximately $500 million to the joint venture and will own a significant majority stake.
  • IndoSpace Core has committed to acquiring 13 well-located industrial and logistics parks totaling approximately 14 million square feet, from current IndoSpace development funds.
  • The venture also has the option to acquire an existing pipeline worth approximately $700 million as well as participate in a future development pipeline.

A warehouse

Andrea Orlandi, Managing Director, Head of Real Estate Investments – Europe, CPPIB, said, “The strong fundamentals underlying the Indian manufacturing and retail sectors and growth in e-commerce, combined with the low stock of high-quality modern industrial real estate in the country, make this a compelling investment opportunity for a long-term investor like CPPIB.

The Canadian fund, which has invested about $3 billion in India since 2010, has been ramping up its India play over the past couple of years. Last month, the Toronto-headquartered fund formed a joint investment platform with Mumbai-based developer The Phoenix Mills Ltd to develop, own and operate retail-led mixed-use developments in India, reports VCCircle.

 

 

 

May 16, 2017   No Comments

India’s Central Bank Allows Bank Investments in REITs, InvITs

India’s central bank, The Reserve Bank of India, will allow banks which are currently allowed to invest as much as 20% of their net-owned funds in equity-linked mutual funds, venture capital funds and stocks, to invest in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). The central bank will issue detailed guidelines by the end of May.

Real Estate

Markets regulator, Securities and Exchange Board of India has been easing rules to make REITs and InvITs more attractive to investors. In January, the markets regulator permitted mutual funds to invest in REITs and InvITs.  In March, India’s insurance regulator also amended guidelines for insurers to invest in these asset classes, reports the Livemint.

Private equity firm Blackstone Group Lp, the largest owner of office real estate in the country, may list two separate REITs for its office assets with developer partners.

 

 

April 8, 2017   No Comments

Flexible Office Concepts Gain Traction in India

To set up its presence in India, China‘s e-commerce firm Alibaba rented 30 seats in a flexible office in Bangalore. The deal for the dedicated seats or private studios is with co-working community venture CoWrks one of the largest commercial real estate developers in the country.

Inside an Office

Sidharth Menda, CEO at CoWrks, said many corporations have been rethinking their real estate strategy to now include working out of CoWrks. Bangalore-based data tracking firm Tracxn says that currently there are 61 sites where co-working spaces are available in India of which 16 were set up last year. Start-ups and e-commerce firms opt for such spaces to keep overheads low, reports the Economic Times.

March 29, 2017   No Comments

India’s Realty to Get $4.2 Billion in New Global Investments

According to a report from Chicago-based Cushman & Wakefield, India’s real estate sector is expected to record inflow of newly-raised capital amounting to $4.2 billion, including debt and equity in 2017. Global investments are finding routes to India with a long-term horizon on account of strong economic growth and sentiments of the country adds the report.

Investors are acquiring assets in anticipation of the introduction of Real Estate Investment Trusts by the government, and investments in the country’s office sector is expected to more than double this year, reports the Economic Times.

Real Estate

“India’s attractiveness as a global investment destination has strengthened on account of the country’s political will to attract and protect investment growths. India’s inclusion in the top investment destination is a testament of this confidence. The country saw its best year in 2016 with private equity investments the highest in 9 years,” said Anshul Jain, managing director, India, Cushman & Wakefield. “Globally too funds are revising their strategies to concentrate on specific growth circles. India’s office space provides great promise in this direction. Further, the core office markets in India provide stronger rental returns as well as easier exit options as against other sectors.”

 

March 23, 2017   No Comments