PE In Warehousing Plunges By 92%

Private equity (PE) investment in warehousing and industrial space segment plunged 92 per cent to USD 102 million (around Rs 750 crore) during the first six months of this year as investors turned cautious because of COVID-19 pandemic, according to Colliers International. PE Investment in India’s industrial and warehousing segment fell to USD 102 million in January-June from USD 1,250 million (about Rs 9,300 crore) in the year-ago period, the consultant’s data showed. Investment and leasing activity are likely to remain muted over the next year due to slower decision-making by investors because of the pandemic. PE Investment in India’s industrial and warehousing segment fell to USD 102 million in January-June from USD 1,250 million (about Rs 9,300 crore) in the year-ago period. “This segment’s share of total private equity real estate investment in India has been increasing year-on-year since 2017, signifying the increasing attractiveness,” the report said. During 2019 through H1 2020, the industrial and warehousing segment garnered the third highest share of PE investments after office and retail. The investment capital came from foreign investors such as the Abu Dhabi Investment Authority, Canada Pension Plan Investment Board (CPPIB), Ivanhoe Cambridge, Ascendas and Blackstone among others. “Investment activity may be muted for the next one year due to slower decision-making by investors because of the ongoing pandemic. “However, we expect the inflow from both foreign and domestic funds to grow over the next 2-3 years as existing participants expand their portfolio and new players enter the market,” the report said. The report predicts the warehousing segment to bounce back quicker than other segments of real estate, driven by robust demand from e-commerce and other consumer-led occupiers.