Embassy, Warburg in $250 million warehousing JV

 

Real estate developer Embassy Group said it has formed a $250-million (Rs 1,625 crore) JV with private equity firm Warburg Pincus to build warehouses across the country, treading a largely unchartered path for organized players.

The JV, named Embassy Industrial Parks, includes equity investment of $175 million from the New York-based company and $75 million from Bengaluru-based Embassy. About 90% of the initial investment would be used for land purchases. The market for modern industrial and warehousing spaces is rapidly expanding and is estimated to touch about 125 million square feet in the next five years, according to a report from property consultancy firm CBRE.

“We look forward to leveraging Warburg Pincus’ successful global experience in the industrial real estate class. This is an exciting new foray for the Embassy Group that allows us to move into a space that we expect to see grow tremendously, spurred by government policies, concepts like Make in India and the booming e-commerce industry,” Embassy Group chairman and MD Jitu Virwani said. Read more…

 

Embassy, Warburg in $250 million warehousing JV