Assetz Grp looking to rasie $250 mn this year

Singapore-based firm to launch commercial office projects, enter warehousing in order to capitalise on rising e-commerce business

To launch projects of commercial offices and warehousing logistics, Assetz Property Group plans to raise $250 million this year.

The headquarters of the real estate development and assets management company are in Singapore but it has major operations in Bengaluru, along with Bhutan and Australia. It was set up in India in 2006.

The growth in e-commerce has made the warehousing logistics segment attractive to real estate development and asset management companies.

PLANS AHEAD

• Assetz is looking to enter Chennai, Mumbai and Gurgaon in the next few years  
• It has acquired about 450 acres in Bengaluru and parcels in Tamil Nadu
• It has also tied up with Imergy Power Systems for its off-grid warehouse renewable energy system

“India is our focus area. Positive actions by the government have renewed interest in the real estate sector,” said Ben Salmon, chief executive, Assetz Property Group. Salmon often travels to Singapore. He told Business Standard the company would enter industrial logistics segment with development spread across India.

According to a recent report by real estate consultancy firm Knight Frank, the total warehousing space requirement in India is expected to grow at a compound annual growth rate (CAGR) of nine per cent from 919 million sqft in 2014 to 1,439 million sqft by 2019. Also, investment in warehouse can provide an opportunity of realising returns in the range of 12 to 20 per cent per annum to investors who are willing to explore this sector.

Assetz is also looking to go beyond Bengaluru and enter new markets in Chennai, Mumbai and Gurgaon in the next few years, Salmon said. It has acquired about 450 acres in Bengaluru and some land parcels in Tamil Nadu.

About 14 million sq ft of residential development will happen over a period of time, while four million sqft has already been delivered and five million sqft is under development.

Assetz’s focus has been on three verticals till now — premium residential, community development (urban townships) and core office. A new vertical — logistics and warehousing will be added now, the chief executive said.

It has also tied up with Imergy Power Systems for its off-grid warehouse renewable energy system initiative to be used at its industrial warehouses. It will minimise energy outages and lower energy procurement costs, besides reducing carbon footprint.

Till now, it has raised $370 million. Earlier this year, Assetz announced entry into mid-end housing segment — pricing range of Rs 25 lakh to Rs 40 lakh, where Equis Funds Group will be investing $116 million.

Over the next five years, they plan to deliver 20,000 residential units in mid-end housing segment. The first project will be launched in Bengaluru by the end of this year.

The company is also developing Assetz Marq in Bengaluru, a mixed-use project which is based on Information communications technology, in association with Cisco. The project will offer digital-ready residential community with internet, 24x7 surveillance, emergency response, entertainment-on-demand and other utilities service.