1 billion worth investment proposed for developing warehousing parks by Lodha, Bain Capital and Ivanhoe

There will be an equity interest of around 33 per cent for each of the three partners in the property ownership. Lodha will be though responsible for the development, operations and management of the assets, the company said.

On May 11, Wednesday, the Indian real estate developer Lodha announced a partnership with Bain Capital and Ivanhoé Cambridge to set up a next-generation green digital infrastructure platform. There will be a total combined investment of $1 billion for developing digital infrastructure which will include logistics and light industrial parks as well as in-city fulfillment centers across the country.

There will be an equity interest of around 33 per cent for each of the three partners in the property ownership. Lodha will be though responsible for the development, operations and management of the assets, the company said.

The joint platform created will see an investment of around $1 billion to create around 30 million sq. ft. of operating assets to serve India’s digital economy.

The MD and CEO of Lodha, Abhishek Lodha quoted, “With the rapid digitization of our economy and the progress of ‘Make in India’ combined with the China + 1 strategy of most global manufacturers, we see that there is a huge demand for Grade-A digital infrastructure in our country. Following the government’s focus on improving logistics efficiency and creating jobs in different parts of the country, the platform will plan the development of industrial and logistics parks as well in-city fulfillment centers across multiple cities in India,”.

The first development project of the joint platform is at Palava, Mumbai, it will be a 10-acre logistics and industrial park. Additionally, the platform has already started looking at the pan-India acquisitions of land and developed as well as under-development projects in these asset classes.

“This is an exciting partnership that brings together an experienced real estate developer with deep digital infrastructure capabilities with the complementary support of global investors with long track records of success in commercial real estate,” said Ali Haroon, a Managing Director at Bain Capital.

In his comment Chanakya Chakravarti, Vice President, and Managing Director, India, at Ivanhoé Cambridge said, “This partnership opens up new perspectives for expansion of our logistics portfolio in India, a high conviction thesis well supported by strong sector fundamentals as India enters a digital supercycle”,

Bain Capital is a leading global investment platform with strong hold in supporting the development of logistics, industrial, warehousing, and digital assets.

Ivanhoé Cambridge, a global real estate industry leader and a subsidiary of Caisse de dépôt et placement du Québec (CDPQ), a global investment group, is involved in developing and investing in high-quality real estate properties.

Lodha is a leading real estate conglomerate developing around 300 acres of Industrial and Logistics Park near Navi Mumbai. The company had recently announced a JV with Morgan Stanley Real Estate Investing (MSREI) for developing more industrial and logistic park.

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