Puravankara partners Morgan Stanley fund for a warehousing platform
Real estate firm Puravankara Ltd and an investment fund managed by Morgan Stanley have signed an agreement to set up a warehousing platform that will build industrial parks in South India, said two people familiar with the development.
This will be a long-term venture backed by equity investment, where the investor-developer duo will look at greenfield development that include sourcing land and building out warehousing spaces in the form of industrial parks.
“Like any other joint venture, the platform will come to life with the first investment. It is at the initial stage where the process of identifying land parcels has started. Puravankara being Bengaluru-based, the south is its core strength geographically, but they are also in talks for two land parcels on the outskirts of Mumbai. The first project should be launched in 2019-20,” said one of the two people mentioned above, who requested not to be named.
The joint venture between Puravankara and Morgan Stanley fund comes close on the heels of the latter picking up a majority stake in February in Pune-based warehouse and logistics park developer KSH Infra Ltd for around ₹350 crore. MSREI is the private real estate investment management arm of Morgan Stanley Investment Management.
Industrial real estate is fast emerging as the go-to asset class for investors and developers, with the consumption and e-commerce sectors being aided by the government’s Make in India initiative and the roll out of the goods and services tax (GST) and high demand for good quality warehousing spaces.