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K Raheja Corp, part of the CL Raheja group, has formed a 50:50 joint venture with ProLogis, a US-based developer, to set up warehouses and logistic parks across the country.
The JV is expected to invest Rs 2,300 crore (Rs 23 billion) in the next three years. The focus will be on retail and industrial logistics, including that of auto, auto components and other sectors.
The JV plans to build 7.5 million sq ft of warehousing space in the next three years and 25 million sq ft in five years.
The JV has acquired 27 acres in Pune so far and is in the final stages of buying nearly 460 acres in Mumbai, Chennai, Delhi, Bengaluru and Kolkata, among others.
"In India, a majority of the existing distribution space is functionally obsolete. We believe this partnership will be successful in meeting the growing demand for high quality logistics facilities," said CL Raheja, chairman, CL Raheja group.
The warehouses will range from 150,000-300,000 sq ft in size and include cold houses and distribution centres.
Vishwas Dhumal, CEO of the industrial infrastructure and logistics division of K Rajeja Corp, said, "Through the JV, the group would cater to in-house retail needs as well." K Raheja Corp runs retail ventures such as Shopper's Stop, Inorbit Mall, Hypercity among others.
"Over the last few years, ProLogis has achieved tremendous success in Asia following the establishment of operations in Japan, China and South Korea.
Launching development in India, one of Asia's most vibrant growth markets, is a logical next step and one that we believe will create real value for our shareholders and provide reliable access to new warehouse space for our global customers," said Jeffrey Schwartz, chairman and CEO, ProLogis.
The total warehousing market is currently worth $7 billion and is growing 29 per cent annually.
Kishore Biyani's Future Group and Mahindra Group's Mahindra Logistics have also announced plans to set up warhouses for retail and industrial customers.
ProLogis, a leading owner, manager and developer of distribution facilities in the world, has operations in 118 countries across North America, Europe and Asia. The company has assets worth $36.3 billion, comprising 510.2 million sq ft of warehousing and logistics space.
K Raheja Corp, based in Mumbai, is one of the biggest property developers
in the city having interests in residential and commercial real estate, retail, hospitality.
It has a tie-up with US-based hopitality company Marriott International for JW Marriott and Marriott Executive Apartments in Mumbai.
