Through this joint venture, Indospace has acquired a 55-acre land parcel from METL and the latter will own a minority stake in the proposed project with total development potential of 1.28 million sq ft.
IndoSpace, an Industrial real estate and logistics parks’ developer, has entered into a joint venture with Reliance Industries wholly-owned subsidiary Model Economic Township Limited (METL) to develop a logistics park in Farukhnagar in Haryana.
Through this joint venture, Indospace has acquired a 55-acre land parcel from METL and the latter will own a minority stake in the proposed project with total development potential of 1.28 million sq ft.
With this, IndoSpace has expanded its footprint in Delhi-NCR to over 480 acres across eight parks. The partnership reiterates and takes the association between IndoSpace and Model Economic Township further. In 2017, IndoSpace had acquired 140 acres from METL in Badli, Haryana.
“We are excited to enter one of the fastest growing industrial zones in partnership with METL as we continue to evaluate opportunities across the country. METL’s expertise in developing large-scale industrial infrastructure in this micro-market will add significant value to this partnership. This project highlights IndoSpace’s focus on supporting the growth of India’s logistics sector, which will continue to expand robustly due to improved warehousing infrastructure,” said Rajesh Jaggi, Vice-Chairman - Real Estate, Everstone Group.
The Farukhnagar micro-market has grown exponentially over the last few years and has emerged as a major warehousing and industrial destination in the Delhi NCR. Farukhnagar is close to Gurugram, New Delhi and other major manufacturing and consumption centers, and has fully developed social and physical infrastructure.
This proposed development is expected to meet the rising demand in Delhi-NCR for Grade A warehousing space from third-party logistics (3PL), fast moving consumer goods (FMCG), and e-commerce sectors.
IndoSpace is a joint venture between the Everstone Group, an India and Southeast Asia-focused private equity and real estate investor, and Realterm, a US-based global industrial real estate group.
“We are happy to partner with IndoSpace to develop this world-class facility. This project is testimony to our pioneering efforts to attract world-class companies through best-in-class infrastructure and establish primacy of METL in the industrial and logistics map of Delhi NCR,” said Shrivallabh Goyal, Whole-Time Director and CEO, METL.
The logistics and industrial real estate sector have been showing robust growth across the country in the last few years. The partnership is expected to benefit IndoSpace’s regional presence and strengthen its investment strategy.
Adding to its pan-India presence, the acquisition is expected to help IndoSpace grow its footprint strategically across this region while attaining its long-term goal of 120 million sq ft of modern logistics infrastructure across the country.
At present, IndoSpace has a portfolio of over 41 million square feet across 39 industrial and logistics parks under various stages of development in nine major consumption hubs in India.
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