Apart from the preferred asset classes of office and residential, private equity firms have been taking greater interest in warehousing, logistics and retail real estate. Private equity investors and overseas developers are already looking at opportunities to enter India’s industrial and warehousing sector by investing in various development projects.
Foreign investors, including those from China, Japan and Korea, have specifically shown a lot of interest in industrial development projects in the backdrop of implementation of Goods & Services Tax.
“With the implementation of Goods and Service Tax, warehousing and logistics’ spaces will start to see a consolidation of assets. Unlike earlier (small assets in various states), developers will focus on the development of large-scale, technologically advanced warehouses.Such assets will attract private equity (PE) investors, since they can deploy a larger amount in fewer assets, making monitoring easier. If they perform well, such assets can even fetch a better valuation when monetising through REITs or other ways,“ said Anuj Puri, chairman and country head, JLL India.
Read more: ETRealty
