U.S.-based Panattoni will make investments $200 million (about ₹1,597 crore) in India to develop 4 industrial and logistics parks throughout main cities because it sees large development potential amid rising demand for warehouses.
Panattoni, a world chief in industrial and logistics actual property improvement, has debuted within the Asian market with its entry in India. The Indian enterprise, Panattoni India Development Pvt. Ltd., is headquartered in Bengaluru.
In an interview with PTI, Sandeep Chanda, Managing Director, India, Panattoni, sounded bullish on the long-term development of the economic and logistics section of the Indian actual property.
The demand for high quality areas to arrange industries and warehousing in an built-in park, with provision of all primary infrastructure, has been rising in India from third-party logistics, e-commerce and manufacturing sectors.
The firm is holding discussions with land homeowners to buy about 250 acre of land in Delhi-NCR, Mumbai, Chennai, Hyderabad, Bengaluru and Pune to develop 4 tasks within the first part of the India enterprise.
‘We shall be investing $200 million (about ₹1,597 crore) for the event of preliminary 4 industrial and logistics parks comprising 6.5-7 lakh leasable space,” he told PTI.
The proposed investments include land, construction and other costs.
Mr. Chanda said the company would also rope in global institutional investors to develop these four projects.
The funds will be raised at the special purpose vehicle (SPV) level to be created separately for the development of each project.
“In the final 9-10 years, since 2013, we now have been growing on a median 35 million sq. toes yearly globally. India’s whole leasing stood at 27-28 million sq. toes final yr. So that is the dimensions at which we function,” Mr. Chanda said.
Asked about the minimum size of land it requires for the development of logistics parks, he said any size between 50-100 acres would be a sweet spot.
However, the company is not averse to developing small 25-acre parks.
Mr. Chanda, formerly head of strategy and acquisitions at Embassy Industrial Parks, said 75-80% area in the projects will be earmarked for warehouses and the rest for the establishment of industries.
The company will also follow its global strategy to exit from each project after it completes development as well as leasing of spaces to tenants.
Robert Dobrzycki, CEO & Co-owner, Panattoni Europe and India, highlighted that the global firm has established itself as a major industrial and logistics real estate developer in North America and Europe.
“I see no cause why the institutionalisation and dramatic development of the economic and logistics markets in North America and Europe can’t be repeated in Panattoni’s Indian bridgehead and past into different Asian international locations and on a quicker, better scale within the years forward,” said he said.
The company will facilitate investors’ access to these assets and support the sustainable growth of India’s economy and employment.
Panattoni feels that India’s aim of becoming a global manufacturing hub, supported by global firms’ growing interest in diversifying their dependence on China and its supply chains, is expected to be a key demand driver.
The fast adoption of e-commerce in India is also fuelling demand for warehouses.
Panattoni will bring Group’s latest design and construction technology to India.
“Our entry to world institutional capital and an intensive worldwide occupier community will complement the sturdy core demand for contemporary sustainable industrial and logistics actual property we’re seeing from home Indian corporations,” Chanda stated.
Greater provide chain effectivity, speedy e-commerce development, and consolidation amongst third-party logistics suppliers are all elementary market drivers that India more and more shares with its counterparts within the U.S. and Europe, he added.
Panattoni India Development Pvt. Ltd. is part of the Panattoni Group – one of many largest industrial actual property builders on this planet. On common, it invests about 8 billion euros a yr globally. With 46 workplaces throughout the United States, Canada, Europe and Asia, Panattoni has developed 544 million sq. toes of area for over 2,500 world shoppers.
Source: www.thehindu.com