OPIC commits $100M in Everstone Capital’s logistics park, to invest $35M in BanyanTree SME fund
Overseas Private Investment Corporation

Indospace Logistics Parks, a joint venture between Everstone Capital and Canada-based Realterm Global, has received a commitment of $100 million for its second logistics park fund, Indospace Logistics Park-II, from Overseas Private Investment Corporation (OPIC).

Everstone Capital, the India focussed private equity fund’s real estate investment activities, are focused on two sub segments which include the retail and mixed use developments. The retail part of funded by its Horizon Realty Fund and the second one by IndoSpace Logistics Parks.

Everstone Capital has more than $1.5 billion assets under management (AUM).

OPIC is the U.S. Government’s development finance institution. OPIC has committed $4.2 billion to support the creation of more than 46 private equity funds in emerging markets since 1987. These funds in turn have invested $5.6 billion in more than 570 privately-owned and managed companies across 65 countries.

According to OPIC board, the investments from the logistics fund could generate more than 25,000 local jobs and catalyse US job creation as well, as the vast majority of its tenants are large multinational corporations, which include US-based firms.

The fund is looking to raise $350 million to develop warehouses, distribution centres, cargo handling facilities and other logistics infrastructure related development.

Its first fund had a corpus of $240 million and it was closed in April 2009. The fund is still looking at land parcels in outskirts of Mumbai, Bangalore, Pune, Chennai and NCR to build its industrial warehouses.

The first phase of its first industrial logistics park in Chakan, Pune, is expected to be ready in another three months and it is already negotiating leases. The fund is expecting an internal rate of return (IRR) of 20-25 per cent in the long term from its logistics business. The fund has 35-40 per cent of its corpus left for investment.

An e-mail sent to Everstone Capital and an SMS sent to Sameer Sain managing partner of Everstone Capital went unanswered.

OPIC will also invest $35 million in BanyanTree Growth Capital II fund, SMEs focused PE fund in India. The fund has a target capitalization of $175 million.

(Edited by Prem Udayabhanu)

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