Singapore-headquartered private equity fund Ascendas-Singbridge plans to float a separate fund to invest in India’s warehousing segment. (ET Realty News)
“We do not want to be dependent on a particular sector and we are looking to derisk. We have capability to build warehouses, control and manage development,” said Sanjay Dutt, India CEO for Ascendas-Singbridge. He did not share the fund size. “We will be crystallising our new initiative by end of this year.”
So far, the PE fund has been investing heavily in the real estate space in India. Ascendas-Singbridge will establish logistics parks on 50-100 acres on the outskirts of major cities. It will look at setting up warehouses at nodal manufacturing hubs like Bhiwandi, Hoskote, Nagpur, Thane, Raigarh district and Chakkan, among others. “Our intention is to be a pan-India player. We may start with one region and then grow presence,” said Dutt.
According to industry experts, minimum land value in top industrial spots is 1-2 crore per acre currently. Setting up a 100-acre warehouse including infrastructure cost, will require a minimum of 200crore investment per warehouse. The company, being in the real estate business, will source land either on its own or enter into joint venture and joint development agreement to mark its foray into the segment.