Logistics market glows like a 'supernova' with entry of global behemoths

Some of the world's largest logistics players and private equity fund managers are foraying into Indian industrial and logistics spaces in the country which has a total stock of about 350 million square feet (msf).

- RAGHAVENDRA KAMATH

Most players are looking to invest anywhere between $500 million and $1 billion in new ventures in the next couple of years, said experts on this segment. Prologis, the largest warehouse owner in the world, has brought in Vineet Sekhsaria, former executive director and head at Morgan Stanley Real Estate Investing India, as head of its India operations.

Prologis owned or had investments in properties and development projects spread about 1 billion square feet in 19 countries as of September last year. According to sources, Prologis has drawn up huge plans for the Indian market and plans to build large warehouses near major industrial and commercial centres of the county.

When contacted, a spokesperson for Prologis said: "Prologis is always thinking about ways to grow its business and India is on its way to becoming an important logistics market. As a leading global company, we consistently position ourselves to take advantage of emerging opportunities, including exploring new markets."

Alta Capital set up by Siddhartha Gupta, a former managing director at US-based fund manager Blackstone, is also evaluating two or three platform level deals in the industrial and warehousing space.

Alta Capital has a managed account with a Singapore-based fund.

Alta Capital did a platform deal with warehousing developer Pragati last year wherein it spent $50 million and is looking to deploy $150 million more. It also bought two warehouses from Morgan Stanley last year.