CDPQ backs logistics expansion by Logos India

Logos India Logistics Venture will develop and own high-quality, modern facilities in key hubs across India such as Mumbai, Pune, Chennai and Bangalore, and plans to have investment capacity of up to $800 million. The company is a joint venture between Logos and Singapore-based developer Assetz Property Group. Final closing of the venture is subject to regulatory approval.

CDPQ will invest in Logos India via its real estate subsidiary Ivanhoé Cambridge, according to a release. The unit previously invested in Logos’ Singapore arm, along with Canada Pension Plan Investment Board, in support of an initiative to develop logistics projects in Singapore and Indonesia. Canadian real estate development company QuadReal Property Group will also invest in Logos India.

India's warehousing industry has drawn interest from investors in recent years on the back of predictions that demand for space will grow at an average annual rate of 9% through 2019. The country’s booming e-commerce sector is expected to propel this growth, with the recently introduced goods and services tax, which eliminates many of India’s intra-state tariffs and customs barriers, providing further encouragement to form national logistics networks.

CDPQ made its first investment in the Indian logistics space last year, committing INR10 billion ($155 million) for a majority stake in TVS Logistics, a privately held subsidiary of TVS Group. The deal saw KKR and Goldman Sachs fully exit their holdings.

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• Topics
• South Asia
• Infrastructure
• Expansion
• India
• Logistics
• Caisse de depot et placement du Quebec (CDPQ)