Industrial and logistics parks developer IndoSpace has invested Rs 1000 crore to expand its warehousing premed in NCR, a senior executive said. The company has developed 3.4 million sq ft spread across two logistics parks, one in Dhatir, near Palwal and the other in Taoru, near Sohna.
“From a warehousing perspective, NCR is a crucial location for us. With the region serving as a gateway to the North market and home to multiple industries and opportunities, we are expanding our network,” said Rajesh Jaggi, Vice Chairman, Real Estate, Everstone Group.
IndoSpace is the real estate arm of the Everstone Group, an India and Southeast Asia-focused private equity firm.
Apart from these parks, IndoSpace own 8 parks with an overall potential development of 14 million square feet in the NCR region.
The company is looking at several greenfield assets in NCR for FY24 as it believe the current and upcoming infrastructure (KMP, DME) will result in a rising demand for warehousing, especially for 3PL and e-commerce companies.
“Going forward, we aim to keep up the momentum and we are sure that these new parks will play a vital role in propelling the growth of various sectors including Pharma, 3PL, e-commerce, distribution, and retail,” Jaggi said.
IndoSpace has a portfolio of 50 logistics parks spread across 57 million square feet in 10 cities. The warehousing industry has grown rapidly around Haryana’s Bilaspur Chowk belt, which consists of Pataudi Road, Tauru Road, Farukh Nagar, and Jhajjar.
According to Savills India, Industrial and warehousing space experienced absorption of more than 46 mn sq. ft in 2022. Among the major cities in India, Delhi NCR led the pack with the highest absorption in 2022 at 16% which was followed by Mumbai at 14%.
3PL and e-commerce sectors continued to stimulate warehousing demand, together accounting for 52% of the total absorption witnessed in 2022. The overall industrial and warehousing space stock in tier I cities stood at 300 mn sq. ft at end of 2022 and is expected to reach 342 mn sq ft in 2023. In terms of investment, the warehousing sector raised private equity to the tune of $1.5 billion in 2022.
