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Buoyed by the burgeoning demand for warehousing space, Embassy Industrial Parks is investing aggressively in it. The company said that a total of nine upcoming parks, totalling close to 25 million sq ft, will be up and running in four to five years.
Equity investment
The group said it also plans to invest ₹1,600 crore as equity to build parks in Mumbai, Delhi, Bangalore, Chennai, Hyderabad and Ahmedabad.
Embassy Industrial Parks is a joint venture between real estate developer Embassy Group and private equity firm Warburg Pincus India Ltd.
“We are looking to cater to the booming needs for logistics and warehouses space from sectors such as e-commerce, pharma, healthcare, FMCG, apparels and telecom, among others. We are acquiring land tracts which can be used to set up modern and well-planned industrial, light manufacturing and warehousing facilities,” Anshul Singhal, CEO, Embassy Industrial Parks told BusinessLine.
Long-term leases
Singhal said that the company would be creating only Grade A industrial warehouses to be leased out to clients. “We will give the warehouses on long-term leases. We will continue to own and manage the warehouses,” he said, adding that the rentals at industrial parks vary between ₹18 and ₹30 a sq feet.
Embassy Industrial Parks recently invested ₹350 crore for a project in Pune and ₹140 crore in Gurgaon.
Last year, Embassy Industrial Parks signed a memorandum of understanding (MoU) with the Haryana government to build three industrial parks in the State, investing ₹1,910 crore.
“We have MoUs with Haryana and Tamil Nadu governments to build industrial parks,” he said, and added that such businesses require huge contiguous tracts of land to start operations.
Singhal said Delhi NCR region, Chennai, Mumbai-Chakan belt and Hyderabad offer immense potential to start warehouse business.
He said the company is constantly on the lookout for potential land tracts.
“We are in talks with various land owners for acquiring large tracts of land,” he said.
While Singhal did not indicate how much the company has already invested, sectoral analysts indicated that Embassy Industrial Parks would have invested close to ₹1,100 crore so far.
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