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Singapore-based Assetz Property Group will branch out into the logistics and warehousing segment to take advantage of flourishing e-commerce scene in India, according to media reports.
In line with this, the company aims to raise about US$100 million (S$134.69 million) from institutional investors to fund its land acquisition. Over the next five years, it will buy land parcels in Karnataka, Tamil Nadu and Maharashtra, where it would build the facilities. But it will launch its first warehouse on a 60-acre plot at Hoskote near Bengaluru.
“This is the perfect time for us to get into the logistics business because there is not much competition. With not many organized players yet, [there is] a lot of demand,” said Assetz Property Group’s CEO & Co-founder Ben Salmon.
The booming e-commerce sector has driven the demand for new warehouses, and has necessitated the expansion of existing storage facilities. For instance, companies like Amazon and Flipkart are rushing to build warehouses across the country. In fact, the former has opened a total of 11 warehouses in India over the past two years.
“Logistics is a highly unorganized sector, and so if a company is able to do a professional, organized manner, it is likely to find traction amongst occupiers and investors,” said JLL India’s National Director for Research Ashutosh Limaye, as cited in media reports.
“A company planning to venture into the business now would have an early mover advantage as well,” added Limaye.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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