Morgan Stanley arm in talks to invest $55 million in KSH Group’s warehouse assets
A real estate fund managed by Morgan Stanley is in advanced talks with Pune-based KSH Group to invest around ₹400 crore (approximately $55 million) in its warehousing assets, said two people aware of the development. KSH Group operates in domestic logistics, manufacturing, service and distribution sectors, with over 600 employees spread across eight cities.
The group operates through various companies such as KSH Distriparks, KSH Logistics, KSH Infra, KSH International and Waterloo Distributors.
“They have been in talks to raise funds for their warehousing business, which currently operates assets in the city of Pune. Talks with Morgan Stanley’s real estate investment arm Morgan Stanley Real Estate Investing (MSREI) are in advanced stages and Morgan is looking to invest around ₹400 crore in the warehousing assets,” said one of the person cited above, requesting anonymity as the talks are private.
The transaction is likely to be closed in the next one or two months, he added.
According to its website, KSH has around 1 million sq.ft of industrial warehousing and logistics infrastructure, including assets in use and under development.
The group plans to build out 5 million sq. ft of warehousing space in and around the Pune region by 2020.
MSREI is currently investing from its ninth fund, which has raised well over $2 billion for real estate investments worldwide.