- Over 83 acres of Grade A warehousing space transacted under a PPP model
- Close to INR 700 Cr invested by Blackstone’s Horizon Industrial Park
New Delhi, September 02, 2024: Knight Frank India, the country’s premier real estate and infrastructure advisory consultancy, has successfully executed the monetisation of ~83 acres of prime Grade A warehousing properties for Central Warehousing Corporation (CWC), India’s largest public sector warehousing company. As part of its monetisation efforts, CWC earmarked prime warehousing properties across 50+ locations for modernization and development under Public-Private Partnership (PPP) with a total investment of INR 782 crores across 16 properties.
Blackstone’s Horizon Industrial Park has committed to developing Grade A warehousing across 13 locations in key cities, with a total investment of over INR 700 crores for 70 acres, making it one of India’s largest last-mile logistics portfolios. The remaining 3 location including facilities located in Raipur, Ambattur (Chennai) & Indore are awarded to RSA Warehousing, TransAsia Shipping and LL Logistics respectively, which have the total development potential of ~ 5Lakhs sq ft and the total development cost of INR 82 crores.
Knight Frank India and CWC jointly strategized, preparing the Concession Agreement, and managing the bid process for this program. Under this model, the concessionaire will design, build, finance, and operate the facilities for a 45-year concession period, after which the facilities will revert to the public sector. The redevelopment is expected to be completed within five years from the appointed date, with all project revenue deposited into an escrow account managed by CWC, which will then disburse the funds to the concessionaire accordingly.
Amit Kumar Singh, Managing Director, Central Warehousing Corporation said, “The primary goal of CWC is to facilitate the development of high-quality warehousing and logistics spaces in India, which will reduce logistics costs while ensuring the quality of goods. Involving the private sector in the modernisation of warehousing will accelerate the development process and contribute to the country’s overall economic growth.”
Amit Kumar Singh, further added, “The partnership with Blackstone Horizon Industrial Park will help monetise our assets into modern warehouses catering to some of India’s top brands. We are aiming to achieve operational excellence and support India’s rapid urbanisation.”
Knight Frank has successfully attracted multiple bids for 34 locations across India, and the bid evaluation is in process. The Request for Proposal (RFP) and Concession Agreement were meticulously drafted by the team to ensure transparency and to meet the requirements of both CWC and the market. Inputs from market players were gathered through a marketing campaign (both online and offline), as well as Investors’ Conclaves held across multiple locations in India. Notably, this is the first time Foreign Investment Funds (FIF) have directly submitted bids for any government tenders.
Shishir Baijal, Chairman & Managing Director of Knight Frank India, said, “As the warehousing sector gains prominence in India, CWC’s efforts to modernise and monetise its prime warehousing locations will play a crucial role in creating a strong ecosystem. Moreover, the involvement of experienced investment players like Blackstone’s Horizon Industrial Park will elevate the quality of warehousing and logistics spaces in the country, further boosting the sector’s growth by unlocking its true potential.”
Shishir further added, “The warehousing sector emerged as a leader, attracting the highest investments for the first time, while the residential sector maintained its strong position due to robust demand. Although the office sector witnessed a slowdown in investments in H1 2023, demand for premium Grade A spaces in prime locations remained high, signalling a potential rebound in the latter half of the year.”