The logistics and industrial segment held a 25% share of the quarter’s fund flow, led by two large deals – Actis’ investment of Rs 2,200 crore in Mahindra Lifescape for warehousing in Chennai and Jaipur, and GIC and ESR Group entering into a partnership to set up a $600 million joint venture.
India’s logistics and industrial market continues to attract global funds and investments in the sector in 2022 are expected to surpass last year’s investments, according to a Cushman and Wakefield report.
The sector has attracted investments of Rs 8,257 crore since the beginning of this year.
The quarterly average of investments in the logistics and industrial sectors was about 1.3 times than Rs 2,755 crore in 2021.
“The recovering inflow of investments driven by foreign investors is a strong indicator that, despite global headwinds, the Indian economy and the real estate sector are in sync to tackle the imminent macroeconomic risks,” said Anshul Jain, managing director, India & Southeast Asia, Cushman & Wakefield. “The logistics and industrial sector is in good shape, as the investments for the year to date have already reached 75% of 2021. Given this, it is likely that the logistics and industrial investment can match or even surpass the 2021 annual numbers.”
The logistics and industrial segment held a 25% share of the quarter’s fund flow, led by two large deals – Actis’ investment of Rs 2,200 crore in Mahindra Lifescape for warehousing in Chennai and Jaipur, and GIC and ESR Group entering into a partnership to set up a $600 million joint venture.
“The demand for 3PL has increased with many fence-sitters returning to the market. Retail and industrial transactions have been promising, and we are looking at closing multiple deals by the end of the year, said Abhijit Malkani, CEO of industrial and logistics property developer ESR India.
Separately, domestic developers and funds such as Welspun One and AA Holdings are stepping up their investments in the industrial and logistic sectors.
“We believe the Indian logistics and warehousing sector will continue to offer opportunities. With the progress of ‘Make in India’ combined with China plus one strategy of most global manufacturers, we see a huge demand for grade-A industrial and logistic parks in our country,” said Abhijit Verma, managing director, AA Holdings. The industrial and logistics asset class is expected to outperform other real estate and infrastructure asset classes in the medium term, with an upsurge in the share of organised retail and e-commerce. The segment is expected to gain further strength and attract more investments in the coming years.
