Singapore-headquartered logistics facilities provider GLP has entered India in a partnership with Mumbai-based industrial real estate developer IndoSpace.
GLP will invest in the investment vehicles of IndoSpace as per their agreement, the companies said in a statement. One of the investment vehicles GLP will invest in is IndoSpace Core, a joint venture between IndoSpace and Canada Pension Plan Investment Board (CPPIB).
Indospace is a joint venture between homegrown private equity firm Everstone Capital and US-based Realterm Global. IndoSpace Core was formed in 2017 to acquire and develop logistics facilities in India. CPPIB initially committed about $500 million to IndoSpace Core for a significant majority stake.
“GLP’s expertise, scale, technology and global relationships will give us a massive advantage and enable us to deliver significant value to our customers and investors,” said Sameer Sain, co-founder and chief executive of the Everstone Group.
Ming Mei, co-founder and chief executive of GLP, said IndoSpace provides the company with immediate scale to capitalise on the early growth stages of India’s logistics industry and expand its own logistics ecosystem.
IndoSpace has over $2 billion in assets under management. It plans to raise additional capital to build a pipeline of around 120 million square feet of logistics infrastructure. The firm has 30 industrial and logistics parks across India.
Earlier this month, Mint reported that The Employees Retirement System of Texas, the pension fund of the US state, had committed about $75 million to the third fund of IndoSpace. The fund, which has a target corpus of $500 million, had marked the first close at $300 million last November.
In May, International Finance Corporation, the private-sector investment arm of the World Bank, had received its board's approval to commit $25 million to the fund.
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.
GLP has over $50 billion in assets under management across its real estate and private equity segments. Its real estate fund platform has assets of around 700 million square feet across the globe. It operates in China, Japan, Brazil, the US and Europe.