Everstone-backed Indospace inks ₹1,000 cr deal with KSH Infra

The joint venture will focus on premium micro-markets such as Pune, Mumbai, Delhi-NCR and Bengaluru, the company said in a statement.

Avendus Capital was the exclusive financial advisor to the transaction.

The partnership will also focus on developing sustainable, resource-efficient, zero-carbon buildings for customers to benefit from energy and water savings. “The projects will also use environmentally friendly, energy efficient building materials that meet global green building standards,” the statement said.

“Due to dwindling demand, the opportunity is huge. As a market leader, we always look forward to fulfill our promise of a world class warehousing backbone for India’s growth. We partner with a reputed and renowned A brand like KSH Infra. With its established and proven expertise, it is sure to add immense value to this joint venture,” said Rajesh Jaggi, Vice Chairman, Real Estate, Everstone Group.

IndoSpace, which is also a fund manager, is promoted by Everstone Capital, US-based real estate group RealTerm and Singapore-based logistics service provider and investor GLP. In 2017, Canadian pension fund CPPIB invested $550 million in the joint venture IndoSpace Core, aimed at setting up logistics facilities across the country, where GLP and Everstone are also investors.

Indospace has so far invested over $3 billion in building its industrial parks across India. It has 41 industrial parks and its portfolio is spread over 40 million square feet.

Indospace also manages three funds – Indospace Logistics Park I, Indospace Logistics Park II and Indospace Logistics Park III, which in total have raised more than $1.16 billion in capital.

Earlier this month, VCircle exclusively reported that Everstone Group is looking to consolidate its two businesses, including IndoSpace, under a single entity as it plans an initial public offering (IPO) for the combined entity.

In May this year, Indospace had said that it plans to invest $300 million to acquire land in major warehousing and industrial hubs in the country and add a 4 million sq ft warehousing portfolio by the end of 2021. In 2020, he had invested $500 million. in nine acquisitions.

KSH Infra, also a warehousing and logistics park developer, is part of the 50-year-old KSH Group, which has multiple businesses such as internal container depots, manufacturing and third party logistics. It has worked with prominent investors such as Pacific Century Group of Hong Kong, Mapletree Investments of Singapore and Morgan Stanley Real Estate Fund of the US.

Last year, the Pune-based realtor agreed to sell 700,000 square feet of a 1.2 million square foot under-development logistics park in Maharashtra’s Chakan city to Mapletree Investments.

KSH Infra has around 3 million sq ft of industrial and logistics infrastructure for several multinational companies such as Kawasaki Motors, Faurasia, Kimberly Clark, Jabil, Bosch, Renault Nissan and Collison.

“We see a growing demand for warehousing and industrial infrastructure from e-commerce, third party logistics and manufacturing players looking to establish a base in India. Given the immense growth opportunity, we are excited to partner with the market leader. Rohit Hegde, Managing Director, KSH Infra said, “With Indospace, we plan to expand our footprint across India.

“We wanted to raise an equity commitment of $200 million along with developmental capital to build a pan-India portfolio of 10-15 million square feet over the next five years,” he said.