Investment and asset management firm Alta Capital has acquired over 2.5 million sq ft logistics built and fully-leased assets from IndoSpace in a deal valued at over $100 million or Rs 840 crore, said persons with direct knowledge of the development.
This is one of the largest deals involving warehousing and logistics assets in India this year.
“These grade A assets in Pune’s Ranjangaon and Chennai’s Sri City are spread over 1.3 million sq ft and 1.2 million sq ft, respectively, primarily catering to the logistics and warehousing requirements in the western and southern region,” said one of the persons mentioned above.
With this acquisition, Alta Capital’s portfolio of warehousing and logistics assets across India will touch 11 million sq ft and assumes significance in the backdrop of the firm recently setting up a platform, LogiCap, to house these assets. Of this, 50% is built and leased to clients such Haier, Motherson Sumi, Jabil, Whirlpool and Alstrom, while the balance is under construction.
Founded by Siddhartha Gupta, former MD of Blackstone India, Alta Capital is the sole operating partner of Rava Partners in India. Rava Partners is the real estate division of Singapore-based Hillhouse Investments.
Rava Partners has invested over $2.5 billion in Asia and out of this, over $1 billion is in India through Alta Capital.
Alta Capital has invested over $1 billion across warehousing, managed workspaces, student housing and educational infrastructure businesses in 2023. It has further done bolt-on acquisitions in all the four platforms.
Some of the notable investments include $200 million in Pragati Warehousing, $325 million in managed workspace provider Table Space, $200 million for the acquisition of Good Host Spaces and $200 million for Cappella Educore.
In March 2020, Gupta had told ET exclusively that the firm is planning to invest $1 billion in India’s burgeoning education infrastructure sector in the next 3-4 years.
ET’s separate email queries to Alta Capital, Indospace and transaction advisor Avendus remained unanswered until the time of going to press.
As a key investor, developer and operator of grade A industrial and logistics real estate in India, IndoSpace’s portfolio includes the largest national network of 52 logistics parks, encompassing 58 million sq ft in delivered and under-development assets across key Indian cities.
Recently, IndoSpace, which Everstone Group backs in private equity, announced that it is planning to invest over $1 billion in acquiring new warehousing and logistics assets across India in the next two to three years.
India has witnessed significant growth in the leasing of warehousing spaces over the last few years driven by the rapid expansion of ecommerce, implementation of the Goods and Services Tax (GST) and increasing demand for efficient supply chain management.
The Indian logistics sector is poised for a significant transformation and evolving supply chains are expected to drive a projected demand for around 1.2 billion sq ft of warehouse space by 2027 spanning across grade A, B and C facilities in cities across the country, showed a recent study.
Major metropolitan areas and emerging industrial hubs have seen a surge in warehouse leasing activity, with companies seeking to streamline logistics and enhance distribution networks.
