Horizon Industrial Parks, owned by US-based fund manager Blackstone, will invest Rs 700 crore to develop 70 acres of warehouse space owned by Central Warehousing Corporation (CWC) through a public-private partnership.
CWC, the country’s largest public sector warehousing company, has drawn up an asset monetisation programme and awarded 83 acres of warehousing space to be developed, of which the major portion has been bagged by Horizon.
Horizon has committed to developing Grade A warehousing across 13 locations in key cities, making it one of the country’s largest last-mile logistics portfolios, a release said.
The remaining three locations including facilities located in Raipur, Ambattur (Chennai) & Indore are awarded to RSA Warehousing, TransAsia Shipping and LL Logistics respectively, which have a total development potential of 500,000 sq ft and a total development cost of Rs 82 crore.
Knight Frank India helped CWC to monetise land parcels.
Under the model, the concessionaire will design, build, finance, and operate the facilities for a 45-year concession period, after which the facilities will revert to the public sector. The redevelopment is expected to be completed within five years from the appointed date, with all project revenue deposited into an escrow account managed by CWC, which will then disburse the funds to the concessionaire accordingly.
Amit Kumar Singh, managing director, Central Warehousing Corporation said, “The primary goal of CWC is to facilitate the development of high-quality warehousing and logistics spaces in India, which will reduce logistics costs while ensuring the quality of goods.”
Singh added, “The partnership with Blackstone Horizon Industrial Park will help monetise our assets into modern warehouses catering to some of India’s top brands.”
The bidding attracted multiple bids for 34 locations across the country and the bid evaluation is in process. Inputs from market players were gathered through a marketing campaign (both online and offline), as well as investors’ conclaves held across multiple locations in the country.
From: financialexpress
Financial News
