The International Finance Corporation has proposed to invest in the third fund launched by Mumbai-based industrial real estate investor IndoSpace Logistics Parks.
IFC plans to make an equity commitment of up to $25 million (Rs 160.8 crore), not to exceed 20% of total commitments, in the $500 million third fund to make control investments with majority stakes mainly to develop industrial and warehousing parks across locations in India, it said in a disclosure.
IndoSpace Logistics Parks is a joint venture between private equity firm Everstone Capital and US-based Realterm Group.
In November last year, the company marked the first close of its third fund at $300 million (about Rs 1,940 crore).
The fund had set a target to a hit a final close of $550 million in commitments in the next few months.
IFC Asset Management Company is also considering a parallel investment in IndoSpace’s third fund.
IFC AMC is wholly-owned subsidiary of IFC and manages funds on behalf of a variety of institutional investors, including sovereign funds, pension funds and development finance institutions. It manages more than $10 billion across 13 funds.
IndoSpace has so far mobilised $584 million across two industrial real estate funds. IndoSpace Logistics Parks I was raised in 2009 with a corpus of $240 million and IndoSpace Logistics Parks II was raised in 2014 with a corpus of $344 million.
Earlier this year, IndoSpace and Canada Pension Plan Investment Board (CPPIB) formed a joint venture—IndoSpace Core—with the pension fund committing as much as $1.2 billion. The venture will focus on acquiring and developing logistics facilities in India.
IndoSpace’s portfolio includes 28 logistics and industrial parks across the country. These include developed parks as well as parks under various stages of development.
The company recently hired Aditya Sikri, former CEO of retail and commercial segments at Bangalore’s Mantri Developers, as its president.
Apart from Indospace, a few other companies are investing in or developing industrial and logistics parks in the country. For instance, South Korea’s Mirae Asset Global Investments Co. Ltd recently entered the Indian real estate market to buy leased-out commercial assets, warehousing and hospitality projects across the top cities of India.
South India-based developer Assetz Property is raising a fund dedicated to the segment under its alternative asset management platform.