LOGOS Group, the Sydney-headquartered logistics operator, has made a foray in to Indian logistics in partnership with domestic real estate developer Assetz Property Group.
The partnership, which has been established as a new standalone platform named LOGOS India, is expected shortly to close its first Indian logistics joint venture with an expected $400 million of equity commitments.
“LOGOS is pleased to announce this key strategic move to expand our operations into India. We are seeing extensive demand from our existing and new customers for institutional grade logistics facilities in the region,” commented Trent Iliffe, joint managing director LOGOS.
LOGOS India is headquartered in Mumbai and is led by chief executive, Mehul Shah, with an initial focus on the key logistics hubs of Mumbai, Pune, Chennai, NCR, Bangalore, Hyderabad and Ahmedabad.
India logistics has taken off among leading institutional investors this year. Regulatory reforms, a rise in e-commerce and the growing appeal of India as a manufacturing hub has put the spotlight on the country’s logistics sector.
A key driver is the Goods and Services Tax, billed by many as a “game-changer”. GST is India’s most ambitious tax reform, aimed at creating a single nationwide sales tax that will replace numerous local taxes.
In May, the Canada Pension Plan Investment Board (CPPIB) committed $500 million to a joint venture with IndoSpace, a developer of modern industrial and logistics real estate. While a month later, Ascendas-Singbridge entered the logistics and industrial sector in India by establishing a partnership with Firstspace Realty, a Mumbai-based real estate firm.
Ivanhoé Cambridge and Macquarie-backed LOGOS has offices in Jakarta, Sydney, Shanghai and Singapore and manages more than $2 billion of real estate assets.