Mumbai-based industrial real estate developer Indospace is looking to expand its presence in the country with the launch of five mega industrial parks.

The company said it will launch one project in Narasapura near Bengaluru, one each in Badli and Bhaproda in Delhi-NCR; and two parks at Khopoli near Mumbai, a company statement said.

Along with the recent expansion and development of its existing Ranjangaon park in Pune, these new parks will add around 10 million sq ft of leasable logistics and light manufacturing space to IndoSpace’s portfolio.

This growth in industrial real estate will take IndoSpace’s operational and under-development pipeline to around 30 million sq ft, catering to the rising demand in India for Grade A warehousing and light manufacturing facilities from companies across multiple sectors.

Positive outlook

IndoSpace is a joint venture between the Everstone Group, a leading India and South-East Asia-focussed private equity and real estate investor, and Realterm, a US-based global industrial real estate leader.

“The government’s welcome move of granting infrastructure status to the logistics sector further strengthens our positive outlook for IndoSpace, as well as for the sector as a whole, because this would help the sector access infrastructure lending at competitive rates.

Logistics players will also have multiple instruments to raise money, including funds from insurance companies and pension funds with longer tenor,” Rajesh Jaggi, Managing Partner, Real Estate, Everstone Group.

According to a recent report by CBRE, GST has already had a positive impact on the warehousing sector, with around 7.4 million sq ft of industrial and warehousing space being leased in H1 2017 across key cities, a 50 per cent jump from H2 2016.

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