Mapletree Logistics Trust has bought a land parcel spread over 55 acres on the outskirts of Bengaluru for Rs 110 crore to strengthen its core asset portfolio, said multiple people aware of the deal.
“The land, located near Hoskote, marks the company’s foray into the Bengaluru market,” said one of the persons quoted above.
Mapletree had in 2021, ventured into the fast-growing logistics space with the purchase of a majority stake in logistics firm KSH Infra from a unit of Morgan Stanley Real Estate Investing (MSREI) for around Rs 455 crore.
KSH Infra owns two warehousing and industrial logistics parks in Pune with an area of about 1 million sq ft, which are leased to blue-chip multinationals.
“The warehousing market in India is growing at a faster pace due to demand from 3PL and ecommerce firms. This has led to many large transactions in the last two years,” said another person.
Large institutional and logistics developers are betting big on the growing demand for warehousing in India, either by forming joint ventures with local partners or by investing on their own in the sector.
The segment has seen some large funds like IndoSpace, ESR, Logos and Blackstone allocating more capital to this segment.
However, rentals will continue to be stable with more supply hitting the market.
Colliers mentioned that the industrial and warehousing sectors attracted $1 billion in 2021.
Some of the large deals closed last year included the Blackstone-Embassy Industrial Park portfolio transaction. This was followed by Morgan Stanley, Macrotech Developers (earlier Lodha Developers), Xander Group (Industrial Platform) and JMFTZ investment in the warehousing space.
Mapletree Logistics Trust is Singapore’s first Asia-focused logistics real estate investment trust with income producing logistics real estate in countries including the US, Singapore, China, Australia, Malaysia, India and South Korea.
