Singapore-based logistics provider Ascendas-Singbridge has signed a joint venture agreement with India's real estate firm Firstpace Realty in Mumbai. Under the agreement, both parties will invest up to US$ 600 million in new warehousing facilities over the next five years in India.
"We will invest US$ 500-600 million to create 14-15 million sq. ft of industrial and logistical warehouse space over the next five to six years," Aloke Bhuniya, the chief executive of the JV
named Ascendas-Firstspace, disclosed at a press briefing in Mumbai last week. He added that more than 80 million sq. ft space is required driven by growing demand from the electronics and auto
sectors in the country.
The joint venture will invest in projects aimed at the development of logistics and factory spaces in Mumbai, the National Capital Region (NCR), Pune, Chennai, Bengaluru and Ahmedabad, Bhuniya said.
Ascendas-Singbridge currently owns and manages over 30 million sq. ft of industrial space across Asia-Pacific. In India, the company manages around 10 million sq. ft of assets across Bengaluru, Chennai, Hyderabad, Pune and Gurugram, across seven IT parks.
A recent report by property advisory firm Colliers International said India's warehousing and logistics sector is booming due to the government’s Make in India campaign, with the National Manufacturing Policy allowing 100% foreign direct investment in e-tailing marketplaces, as well as the impending rollout of the Goods and Services Tax in the country.
Nol van Fenema