ProLogis of US ties up with realty firm RahejaApril 9th, 2008 - 10:41 pm ICT by admin
Mumbai April 9 (IANS) Real estate major K. Raheja Corporation Wednesday tied up with US firm ProLogis, one of the largest logistic infrastructure providers, to develop warehousing and logistic infrastructure development in the country. The 50:50 joint venture (JV) will be the first transaction by the Denver (Colorado) headquartered ProLogis in India.
The $36.3 billion assets-owning ProLogis, in the joint venture, as per the agreement will acquire lands, develop them and later manage these assets.
In India, through this joint venture, ProLogis will initially focus on opportunities in Mumbai, Chennai, Delhi, Bengaluru, Kolkata and Pune.
As of Dec 31, 2007, the US company is reportedly managing and developing 510.2 million square feet in 2,773 properties across the world.
“We have classified out targeted cities into three segments, i.e. tier 1, tier 2 and tier 3. But then we will be focusing only on tier 1 and 2 in the initial phase, wherein our joint venture is already in advanced stages of land acquisition,” Jeff Schwartz, chairman and CEO of ProLogis, said while announcing the JV here.
Giving details of land acquisition in various areas, Vishwas Dhumal, CEO (industrial infrastructure and logistics division), Raheja Corp, said that the JV has already acquired 27 acres of land in Loni, near Pune.
“Advanced stages of land acquisition is on of 14 acres in Bangalore, 120 acres in Chennai, 99 acres in Kolkata, 70 acres in Mumbai and 33 acres in Pune,” Dhumal said.
He added that they plan to develop 7.5 million square feet in three years and 25 million square feet in five years with an approximate investment of “Rs.23 billion in the next three years”.
Schwartz said that the spurt in the manufacturing growth along with port volumes jumping up indicates that there will be a boom in warehousing sector.
“The projections indicate that Indian warehousing sector, which is currently estimated to be worth around $7 billon, in all likelihood, will grow to $10 billion by 2010.”
The compound annual growth rate (CAGR) projection is around 29 percent and the McKinsey report projects that the middle class, which is currently stands at 50 million people, will soar to 580 million people by 2025, he pointed out.
“This means the warehousing sector will see a quantum leap,” Schwartz said.
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