Everstone-Realterm JV launches third India logistics fund

IndoSpace III is targeting a $550 million corpus and has already received commitments of about $300 million, according to a release. The vehicle is expected to close in the next few months. It will focus on developing modern warehousing and light manufacturing parks.

The logistics space is already an active center of development in India as a result of the country’s e-commerce sector boosting demand for shipping and warehousing capacity. Demand is expected to further increase thanks to the recently passed goods and services tax, which is expected to encourage the development of nationwide logistics networks by eliminating almost all inter-state taxes.

Everstone and Realterm launched IndoSpace in 2009 and the JV closed its first fund the same year with $240 million in commitments. IndoSpace Logistics Parks II followed, closing in 2014 at $344 million. The company’s portfolio includes 28 logistics and industrial parks across the country, either completed or in various stages of development. Tenants of its parks include Amazon, Nissan, PepsiCo, Bosch, and Delphi.

IndoSpace has also partnered with Canada Pension Plan Investment Board (CPPIB) to create IndoSpace Core, a JV focused on acquiring and developing logistics facilities in India. CPPIB committed $500 million to the venture earlier this year.

IndoSpace Core has committed to purchasing 13 logistics and industrial parks totaling about 14 million square feet, with an option to buy additional facilities currently being developed by IndoSpace, valued at around $700 million.

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• Topics
• South Asia
• Fundraising
• Infrastructure
• Infrastructure
• India
• Everstone Capital
• Logistics