New investors flock to warehousing as existing ones rush for exit door

Savills Research expects private equity investors to assess an opportunity of around $330 million in the industrial and warehousing segments in 2021

Warehousing is witnessing a new phenomenon. While investors such as GIC and Blackstone have entered it, older ones such as Embassy are looking to exit.

Last month, Singaporean sovereign fund GIC announced a $750-million joint venture (JV) with logistics investor-cum-developer ESR to set up warehouses in the country.

Though GIC had signed a similar JV with K Raheja Corp in 2018, the JV is yet to make any investment. "We are continuously perusing opportunities that can give us appropriate returns," said a K Raheja Corp spokesperson.

In another instance, Shapoorji Pallonji Group put its ambitious $1.3-billion logistics venture with Abu