Everstone Group-backed developer and owner of Grade A industrial real estate IndoSpace is planning to invest over Rs 580 crore to develop two new logistic parks spread over 76 acres in Karnataka as part of the commitment made by the company through a Memorandum of Understanding (MoU) signed with the state government.
In 2022, IndoSpace entered into a seven-year pact with the government, with a commitment to invest Rs 3,000 crore in the state’s warehousing and logistics industry. This investment, the largest ever by an industrial developer in Karnataka, is expected to create 14,000 new jobs.“These parks will have a total development potential of 1.8 million sq ft and are targeted at industries such as automobiles, engineering, electronics, and third-party logistics (3PL) operators. These parks will be developed in phases, and the work will commence this year with plans to make them operational over the next 2–3 years,” said Rajesh Jaggi, Vice Chairman, Real Estate, The Everstone Group.
Of these two proposed parks, IndoSpace Nelamangala II logistics park will be spread over 35 acres and will be developed with an investment of Rs 240 crore. This park is located along the Bengaluru-Mumbai highway (NH48) and aims to strengthen the region’s industrial capabilities.
The second park, IndoSpace Narasapura II will span over 40 acres and is situated off Old Madras Road (NH 75), close to major industrial hubs such as Vemgal, Malur, and Hoskote. The company will make an investment of Rs 340 crore in this development.
IndoSpace currently operates three logistics parks in Karnataka. IndoSpace Nelamangala I covers around 16 acres, IndoSpace Bommasandra spreads across 5.4 acres on the new Bengaluru-Chennai highway, and Narasapura I spans over 64 acres.
IndoSpace has the largest national network of 52 logistics parks with a delivered space of 58 million sq t and underdevelopment projects across 11 cities.Investments in the industrial & logistics segments have remained strong, led by rising demand for this asset class, supported by the ongoing decentralisation of manufacturing capacity from China, coupled with government initiatives such as the ‘Make in India’ and ‘Production Linked Incentive (PLI) scheme’.
A favourable regulatory backdrop, along with the government’s support through policy and reforms, is further expected to boost infrastructure spending and, in turn, the overall demand for modern logistics facilities.
The confidence among developers, owners, operators, and investors in this asset class has remained high, owing to the rapidly increasing need for last-mile deliveries and logistics.
