Mapletree Investments Acquires KSH Infra’s logistics asset

Singapore-based Mapletree concluded the acquisition in two tranches. In the first tranche, it had part-funded the equity requirement for the park’s development in June 2020.

The remaining 500,000 sq ft of the 1.2 million sq ft logistics park was acquired by Mapletree in 2021 for about ₹140 crore (about $16.9 million), according to Rohit Hegde, managing director, KSH Group, thus, valuing the complete transfer of the park at over ₹450 crore (about $54.4 million).

“It (Mapletree) provided a commitment to acquire the project at a pre-agreed cap rate, once fully developed and leased,” according to a press statement.

The logistics park is currently fully rented out, as per Hegde, with Canada-based Linamar Corp., Excelsis Energy Pvt Ltd, and Switzerland-based multinational Reiter, among its key clients.

Avendus Capital acted as the exclusive financial adviser to the transaction.

“This transaction strengthens global investor interest in India’s industrial logistics space and marks a successful outcome for both KSH Group and Mapletree. KSH Group was able to access development capital and Mapletree was able to tie up the acquisition at the preliminary stage,” Prateek Jhawar, executive director and head, infrastructure and real assets investment banking, Avendus Capital said.

Last year, the Pune-based construction firm had inked a joint venture agreement with IndoSpace, an investor and developer of industrial warehousing and logistics park, to develop a 10 million square feet portfolio of warehousing and logistics parks across the country, over the next five years. IndoSpace invested about ₹1,000 crore as part of the deal.

Among other deals in the warehousing real estate space, GreenBase Industrial and Logistics Park, a joint venture of Mumbai-based Hiranandani Group and US private equity giant Blackstone Group, leased out about 200,000 sq ft industrial space to Jost India, in April.

In January, the US-based PE giant set up a logistics vertical ‘Horizon Industrial Parks’ in India with about 16 grade A logistics and warehousing assets worth $900 million, spanning 24 million sq ft, to tap the rising demand for warehousing real estate in India.

According to Jakhar, the warehousing industry is growing at about 40 million square feet a year, with rising interest from institutional investors. However, one of the key challenges to India’s warehousing real estate segment is the shortage of land parcels for development of such real estate. This comes in the backdrop of a 9% YoY growth in demand seen for industrial and warehousing real estate in India’s top cities in October, according to a report by Colliers International.