Singapore-based company Ascendas-Singbridge Group and global investment firm Temasek Holdings have committed Rs 2,000 cr for investment in Indian logistics and industrial real estate sectors in key locations across India.
The commitment for investment follows the recent establishment of Ascendas-Firstspace, a joint venture between Ascendas-Singbridge and Firstspace Realty, to deliver state-of-the-art logistics and industrial facilities across India’s major warehousing and manufacturing hubs.
“Ascendas-Singbridge has over 20 years of experience in India and we are committed to India’s real estate growth story. Given strong domestic consumption trends, investments in high quality logistics and industrial facilities are necessary to support India’s economic growth in the years to come,” said He Jihong, Ascendas-Singbridge Group Chief Investment Officer.
It is expected that the platform will invest in projects in key warehousing and manufacturing hubs in Mumbai, National Capital Region, Pune, Chennai, Bengaluru, and Ahmedabad, among others.
It is looking to develop a portfolio of 13 to 15 mln sqft of space. To date, it has two seed assets with 1.25 mln sqft of operational space and over 4 mln sqft in development potential.
“We view the logistics and industrial sector as a good proxy to growing middle-income populations and transforming economies. The positive momentum of the sector, underpinned by the Indian government’s Make in India vision as well as healthy consumption trends, present opportunities for us to further invest in India’s continued growth,” said Promeet Ghosh, Managing Director, India, at Temasek.
Jointly owned by Temasek Holdings and JTC Corporation through a 51:49 partnership, the Ascendas-Singbridge Group undertakes urbanisation projects spanning townships, mixed-use developments and business/industrial parks. It has projects in 28 cities across 9 countries in Asia, including Australia, China, Indonesia, Singapore, South Korea and India.
In India, Ascendas-Singbridge has been developing, managing and marketing IT parks, industrial & logistics parks, and integrated developments. Ascendas-Singbridge has over 14.5 mln sqft of assets under management in India valued at around Singapore $2.5 billion.
The portfolio includes International Tech Park Bengaluru; International Tech Park Chennai and CyberVale in Chennai; CyberPearl, The V and aVance in Hyderabad; International Tech Park Gurugram; International Tech Park Pune and Blueridge II and an IT SEZ in Pune; Arshiya Warehouses in Mumbai. In addition to IT Parks, Ascendas-Singbridge is also developing integrated projects with sector specific SEZs, commercial, industrial, residential and supporting social amenities in Chennai.
Ascendas-Singbridge has also separately launched an industrial real estate development platform in India dedicated to creating world-class logistics and industrial infrastructure across the country. This is expected to address the growing demand for quality logistics and manufacturing space from sectors like third-party logistics, e-commerce, automobiles, FMCG, modern retail and engineering among others.