Logistics operator positions for US$37 billion market as companies diversify from China
Canada Pension Plan Investment Board and IndoSpace purchased six industrial and logistics parks valued at ₹30bn through IndoSpace Core, their joint venture established in 2017 to acquire and develop logistics facilities across India.
The acquisition spans 380 acres with a leasable area of nine million square feet.
The assets sit in Bengaluru, Chennai, Delhi, Mumbai, and Pune.
CPP Investments committed ₹14bn to the acquisition and owns 93 percent of IndoSpace Core.
The market values the parks at $471m.
Consulting firm IMARC Group projects India's warehousing market will reach US$37bn by 2032.
After the transaction, IndoSpace Core's portfolio expands to 22 million square feet across 948 acres, serving over 120 global and domestic companies across Bengaluru, Chennai, Delhi, Hyderabad, Mumbai, and Pune.
Reuters reported that warehouse developers are facing significant demand as companies position themselves for India's economic expansion and aim to diversify supply chains beyond China.
Hari Krishna V, managing director and head of Real Estate India at CPP Investments, stated that “India's logistics sector continues to grow, driven by urbanization and the expanding manufacturing footprint.”
CPP Investments' partnership with IndoSpace provides access to opportunities in the sector.
Anshuman Singh, managing director and CEO at IndoSpace, said companies are diversifying supply chains beyond China as India cements its position as a global manufacturing hub.
“We are witnessing an increasing demand for high-quality, compliant, and sustainable infrastructure,” he added.
IndoSpace has developed and is developing over 60 million square feet.
In 2023, CPP Investments committed US$205m to IndoSpace's new fund targeting US$600m in equity commitments.
