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Tuesday, October 17, 2023

QIA, Grosvenor Boost IndoSpace India Shed Fund to $393M Second Closing

IndoSpace Logistics Parks IV focuses on India’s eight largest logistics markets (Image: IndoSpace)

Indian logistics operator IndoSpace has secured an additional $150 million for its fourth development fund, with commitments from the Qatar Investment Authority and Grosvenor boosting the vehicle to a second closing of $393 million.

The investments in IndoSpace Logistics Parks IV by sovereign wealth fund QIA and Grosvenor, a centuries-old group controlled by the Duke of Westminster and his family, will further the mission of developing state-of-the-art industrial and logistics parks in India’s top eight markets, the GLP-backed developer and fund manager said Tuesday in a release ↗.

The latest funding round follows ILP IV’s initial closing of $243 million, led by a $205 million investment by the Canada Pension Plan Investment Board earlier this year ↗. ILP IV targets $600 million in total equity commitments, and the vehicle is expected to add up to 30 million square feet (2.8 million square metres) to the portfolio of IndoSpace after the first three development funds accounted for a combined 56 million square feet.

“QIA and Grosvenor’s participation in this round reflects the attractive opportunity to develop modern Grade A industrial and logistic parks in the world’s fastest-growing large economy,” said Mumbai-based IndoSpace, whose backers include Asian industrial giant GLP.

Riding India’s Growth Wave

ILP IV focuses on India’s largest logistics markets: Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune.

IndoSpace Capital CEO Brian Oravec (Image: IndoSpace)

IndoSpace in December 2018 announced the closing ↗ of its $1.2 billion ILP III, just three months after establishing a strategic joint venture with GLP to mark the Singapore-headquartered firm’s entry into India.

The IndoSpace Core JV had a mandate to acquire 13 industrial and logistics parks totalling 14 million square feet in Chennai, Pune, Mumbai, Delhi and Bangalore, with an option to buy an additional 11 million square feet from IndoSpace funds’ development pipeline.

QIA’s investment in ILP IV comes as the $475 billion sovereign fund looks to further diversify its India portfolio. Most of its recent investments in India have been within the technology, media and telecom sector, as well as in retail business and green energy.

“India’s growth trajectory and national focus on innovation aligns with QIA’s investment approach to support companies with high-growth potential and to invest in a broad range of real estate including warehouses, and industrial and logistics parks,” the Qatari fund said.

Duke Doubles Down

Grosvenor is funding ILP IV via the British group’s Grosvenor Diversified Property Investments business, which aims to double in size ↗ to £1.5 billion ($1.9 billion) in equity over the next five years.

Established in 2012, GDPI invests in global real estate alongside local partners using Grosvenor’s own capital. Its Asia Pacific bets include an investment in Australian industrial platform Gateway Capital ↗ alongside Canadian real estate player Cadillac Fairview ↗.

Among Grosvenor’s past investments in the region were the purchase of a 10-storey shopping tower ↗ in Tokyo’s Ginza district in 2017 and a commitment to Sydney-based Taronga Ventures’ RealTech Ventures Fund ↗ in 2021.

James Mackreides
James Mackreides
'Mac' is a short tempered former helicopter pilot , now a writer based in Sofia, Bulgaria. Loves dogs, the outdoors and staying far away from the ocean.

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