Embassy Industrial Parks will invest about $300 million (about Rs 2,100 crore) in the next three years to develop its ongoing logistic and warehousing projects, a top company official said.
The company, a joint venture between realty firm Embassy group and private equity firm Warburg Pincus, is developing industrial and warehousing parks in Chakan (Pune); Bilaspur and Farrukhnagar (NCR); Sriperumbudur and Hasur (Tamil Nadu); and Hyderabad in phased manner.
"We have completed around 2.7 million sq ft area so far across three warehousing parks at Chakan, Bilaspur and Farrukhnagar," the company's spokesperson Aditya Virwani told PTI in an interview.
The company has already invested around $80 million since 2016 when it started the operation.
Virwani said the work is in progress to develop around 7 million sq ft of warehousing and industrial spaces.
Asked about the investments, he said, "We will be infusing $250-300 million to complete these ongoing projects."
Virwani said the demand for Grade-A warehousing spaces has gone up with the implementation of the goods and services tax (GST).
E-commerce and third-party logistics firms are the main drivers of this demand, said Virwani, who is also the chief operating officer (COO) of the realty firm Embassy group.
The demand from automobile companies has taken a hit because of the slowdown in the automobile industry, he said, but added that this would not have much impact on overall leasing activities.
According to the property consultant, the leasing of warehousing spaces went up by 31 per cent to over 13 million sq ft across eight major cities in the first half of 2019.
Elaborating on its various projects, Virwani said the Embassy Industrial Parks has 52 acres land at Chakan, Pune with 1.1 million sq ft of development potential.
It has 24 acres with 6 lakh sq ft area in Bilaspur and 108 acres with 3 million sq ft. of development potential in Farrukhnagar.
In Sriperumbudur, the company has 198 acres with 2.7 million sq ft of development potential. About 63 acres are offered as plotted development.
Around 60 acres land is in Hosur with 1.3 million sq ft of development potential. In Kothur, Hyderabad, it has 45 acres of land with 1.31 million sq ft capacity.
In 2015, Embassy and Warburg Pincus entered into a joint venture to form Embassy Industrial Parks.
Embassy Industrial Parks in its projects provides amenities like rest areas for drivers, dormitories, round the clock canteen, first aid centers, 24/7 security coverage, an excellent fire fighting system, and ample parking space.
Founded in 1993, Bengaluru-based Embassy Group is one of India's largest real estate conglomerates with a broad portfolio of over 54 million sq ft of prime commercial, residential and industrial space in India.
Embassy and Blackstone launched India's first real estate investment trust earlier this year.