Altico Capital forays into warehousing and logistics funding with Rs 650 crore trade

November 5, 2018: Altico Capital has recently closed a Rs 650 crore transaction in the warehousing and logistics sector with Mumbai based Renaissance group promoted by Mayur Suchak. The transaction includes Rs 50 crore co-investment from Asia-focussed private equity fund and Altico’s founding shareholder, Clearwater Capital (now Fiera Capital). Sanjay Grewal, CEO of Altico mentioned, “The funding is towards an ongoing warehousing and industrial park named ‘Renaissance Industrial Smart City’ in Bhiwandi having a development potential of 20 mm sf across warehousing and industrial space. The park is the only one in Mumbai to have the Integrated Industrial Area licence.”

Over 3 mm sf of warehousing space in the project has already been committed to marquee tenants including a leading global e-commerce player, a press release from Altico Capital mentioned. In line with the Altico’s strategy to diversify beyond residential and commercial real estate into other allied sectors, the transaction marks Altico’s foray into financing warehousing and logistics projects. This also coincides with the entry of several large global institutional owners and operators of industrial parks like Logos, E-Shang Redwood, Ascendas Firstspace, etc. into the warehousing sector in India.

Grewal said, “The sector is poised to witness a period of high growth over the next few years driven by the introduction of a common Goods and Services Tax across India, increasing demand from e-commerce players, granting of infrastructure status to the sector by the Government, among several reasons”. Demand for warehousing space in the top 8 cities in India is expected to grow to 671 mm sf by FY 2021, an increase of almost 30 percent from FY 2016 numbers.