Get ready for an exciting development in the world of logistics and real estate! The future of India’s logistics sector is about to take a bold step forward.
CPP Investments, a leading investment management organization, and IndoSpace, India’s top supply chain infrastructure platform, have announced a significant acquisition. IndoSpace Core, their joint venture, has acquired six industrial and logistics parks, valued at a whopping INR 30 billion (C$471 million). This move solidifies IndoSpace Core’s position as India’s largest operator of stabilized industrial and logistics real estate.
But here’s where it gets controversial… CPP Investments, which owns a substantial 93% stake in IndoSpace Core, is committing a significant INR 14 billion (C$217 million) to fund this acquisition. This strategic investment highlights the confidence both parties have in India’s logistics sector and its potential for long-term growth.
The six assets acquired span an impressive 380 acres, offering approximately nine million square feet of leasable area. These projects are strategically located in India’s key logistics markets, including Bengaluru, Chennai, Delhi, Mumbai, and Pune. With this acquisition, IndoSpace Core’s portfolio expands to a massive 22 million square feet of leasable area, serving over 120 global and domestic companies across six major industrial hubs.
Hari Krishna V, Managing Director of CPP Investments, emphasizes the strong structural growth in India’s logistics sector, driven by urbanization and an expanding manufacturing footprint. He believes this acquisition will deliver attractive returns for CPP contributors and beneficiaries, showcasing the potential for high-quality investments in this space.
Anshuman Singh, MD & CEO of IndoSpace, highlights how India’s logistics sector has evolved into a long-term investment story, driven by stable demand and institutional confidence. With over 60 million square feet of infrastructure developed and under development, IndoSpace has established itself as the largest player in India’s industrial and logistics real estate sector. This acquisition further strengthens the partnership between IndoSpace and CPP Investments, built on a shared belief in India’s potential as a global hub.
And this is the part most people miss… IndoSpace’s strategy is not just about acquiring assets but about remaining capital-efficient and proactive in pursuing new development opportunities. As India solidifies its status as a global manufacturing hub, the demand for high-quality, compliant, and sustainable infrastructure is on the rise. IndoSpace envisions its next phase of growth in precisely this space, catering to the evolving needs of the industry.
CPP Investments and IndoSpace’s joint venture is a testament to the potential of India’s logistics sector and its ability to attract significant investments. With this acquisition, they are not just expanding their portfolios but also contributing to India’s supply chain industry, shaping logistics ecosystems, and strengthening India’s growth narrative.
So, what do you think? Is India’s logistics sector poised for a bright future? Share your thoughts and opinions in the comments below! We’d love to hear your insights and engage in a thought-provoking discussion.