Logicap and Mitsubishi Estate partner to develop modern logistics facilities

By Staff Report September 25, 2024 4:40 pm IST

The joint venture aims to meet India’s growing demand for advanced infrastructure solutions and marks a significant expansion strategy.

Rava Partners’ portfolio company, Logicap Management Pte. Ltd., has partnered with Mitsubishi Estate to develop modern industrial and logistics facilities in key Indian industrial hubs. This move aims to meet India’s growing demand for advanced infrastructure solutions and marks a significant expansion strategy.

The seed portfolio includes facilities strategically located in the National Capital Region (NCR) of Delhi. Together, Logicap and MEC aim to build world-class, sustainable facilities that cater to the needs of both traditional industries and the fast-growing e-commerce and IT sectors.

The joint venture aims to acquire world-class industrial and logistics assets in India’s growth zones, including two large-scale facilities in Gurgaon, Haryana. These projects are spread across a total site area of 29 hectares, offering a combined effective area of 179,000 square meters. Developed by Pragati Warehouse, a portfolio company of Logicap, these facilities are designed to support industries ranging from traditional manufacturing to e-commerce.

The facilities have been fully occupied since their completion between 2021 and 2022, demonstrating the robust demand for high-quality logistics infrastructure. With direct access to major highways and industrial centres, these assets will continue to support India’s growing supply chain needs and serve global corporations operating in the country.

Pragati Warehousing

Logicap operates Pragati Warehousing, a key development platform in India, responsible for managing logistics facilities, including over 12 million square feet of Grade-A warehouses, a leading logistics developer.

Col Jitender Yadav, Founder Pragati Warehousing, said, “With the rapid expansion of India’s manufacturing hubs and the surge in e-commerce, this collaboration with Rava Partners allows us to create world-class industrial and logistics facilities that meet the highest global standards. Our goal at Pragati Warehousing is to build a pan-India footprint, providing cutting-edge solutions that address both current market demands and the critical infrastructure challenges of the future. We are proud to be at the forefront of this transformation, delivering sustainable, Grade-A assets across India’s key industrial regions.”

This joint venture will play a critical role in advancing India’s logistics capacity by offering cutting-edge, environmentally certified facilities that meet the stringent requirements of global operators. Both companies aim to create a network of high-quality assets that will drive India’s long-term economic growth.

A vision for long-term collaboration and value creation

This partnership marks the beginning of what Logicap and MEC hope will be a long-term collaboration. Both companies share a commitment to sustainable, long-term value creation through the development of modern logistics infrastructure. Beyond this project, Logicap and MEC look forward to building a pipeline of industrial and logistics assets that will support India’s industrial growth for years to come.

Priyank Shah, Head of Fund Management, Logicap Management Pte SG: “We are excited to partner with a strategic investor such as MEC to grow out our portfolio to meet our target to acquire and build an additional 15 million square feet of capacity in the next year—doubling our current footprint.”

Industrial and logistics markets

India’s industrial and logistics sector is experiencing rapid growth, driven by the country’s burgeoning economy, population growth, and increased demand for efficient infrastructure. By 2025, India is expected to become the world’s fourth-largest consumer market, intensifying the need for scalable, reliable logistics solutions. This partnership aims to seize this opportunity by developing Grade-A industrial and logistics facilities that meet the diverse demands of manufacturing hubs and emerging industries.

As key industrial hubs like Chennai and Pune continue to develop, driven by India’s “Make in India” initiative, there has been a significant rise in demand for large-scale, high-quality logistics and industrial facilities. Both regions have become manufacturing powerhouses, attracting global corporations across industries, including automotive, electronics, and consumer goods, contributing to the country’s increasing need for modern infrastructure.

Logicap and MEC have achieved LEED Gold and Indian Green Building Council Gold certifications for their Delhi NCR facilities, demonstrating their commitment to sustainability and their use of advanced technologies for greener, more efficient infrastructure.