Embassy Forays Into Warehousing

India, October 27, 2015 (Newswire.com) - The Bengaluru-based Embassy Group, which has a property development portfolio funded by Blackstone Group, has appointed Anshul Singhal as Chief Executive of Embassy Industrial Parks Pvt. Ltd. The Industrial spaces business which is a joint venture with Warburg Pincus, will model itself on the lease-rental model that the group has adopted for its commercial projects.

According to Mr.Singhal, “Embassy Industrial Parks is looking to build and lease close to 10 million sq. ft over the next five years. The first phase of this will be to ensure that we take good land positions in key markets—close to cities such as Mumbai, Delhi, Bengaluru, Chennai and Pune, where the industrial presence is active”.

This is Embassy Group’s second attempt to set up a warehousing business. Embassy aims to make three kinds of offerings from the new business: build industrial parks on 50-200 acre land parcels near key cities; set up build-to-suit facilities or campus for international firms; and help companies’ expansion plans by building in return for a long-term, lease arrangement.

Embassy Industrial Parks has also partnered with Canada-based real estate investor Brookfield Asset Management, Inc. to develop a 200 acre plot of land in Sriperumbudur, near Chennai. It will develop build-to-suit industrial and warehousing buildings and also sell industrial plots. The total project cost will be about Rs.550 crore and will take close to five years to develop.

Investments into warehousing business is slowly gaining momentum in India and the country’s warehousing requirement is expected to grow at an annual average rate of 9% to 1,439 million sq. ft in 2019 from 919 million sq. ft in 2014, as per the 2014 report by property consultancy Knight Frank.

Website : http://www.embassyindustrialparks.com/