Logistics company LOGOS India plans to raise a development fund of nearly $ 300 million (Rs 2490 crore) from global investors to fund its development plans.
“We anticipate raising funds by the first quarter of next year, “said Mehul Shah, chief executive officer at LOGOS India.
The company plans to develop 2.5 million square feet every year and deploy Rs 600 crore to Rs 700 crore each year in the next three years, said Shah.
Including the under-construction properties of 5.2 million sq ft, LOGOS has a total portfolio of 12.5 million sq ft.
Recently LOGOS along with its venture partner Ivanhoé Cambridge , the real estate arm of CDPQ, bought additional 66 acres in Chakan, Pune taking their total land holding in Chakan Industrial Area to 143 acres. The partnership would invest Rs 1100 crore in the project including land and development costs.
In 2017, Sydney based LOGOS group and Assetz Property Group, partnered to set up a logistics and warehousing platform that would invest around $400 million to build and manage specialised logistics and industrial parks in the country. In 2022 , Assetz Property Group exited the joint venture with LOGOS.
Shah of LOGOS said the company has seen rental growth of 10-15% in its operating portfolio.
“We expect rents to improve in ethe next 12 to 18 months as demand is moving toward ls quality supply,” he said.
Large tenants prefer institutional, complaints and sustainable properties,” he said.
He said land costs have gone up by 15% on a CAGR (compounded annual growth rate) basis..
Shah believes that Indian manufacturing sector will triple from $350 billion in 2020 to $1 trillion by 2030. “This rapid expansion will drive strong demand for industrial real estate across the country’s key manufacturing hubs. We are well-positioned to enable this growth by building state-of-the-art facilities tailored to the needs of Indian manufacturers,” he said.
With 25 million sq ft of gross leasing in 2023, industrial and warehousing demand across the top five cities remained resilient, witnessing a marginal 2% annual growth. While H1 2023 was relatively subdued, leasing activity picked up in the second half of the year, with H2 2023 witnessing a 26% rise on a half yearly basis, Colliers India said recently.