S'pore logistics co Ascendas to pump $600 mn in warehouse JV

Singaporean logistics firm Ascendas-Singbridge has formed a joint venture with Firstspace Realty that will invest up to $600 million to create warehousing facilities over the next five years in the country.

"We will invest $500-600 million to create 14-15 million sqft of industrial and logistical warehouse space over the next five to six years," Aloke Bhuniya, the chief executive of the JV named Ascendas-Firstspace, told PTI on Thursday.

Ascendas will be holding a majority stake in the JV, while the Bengaluru-based Firstspace, the execution partner, will have a minority share, he said, refusing to disclose the exact equity holding. The investment involves both debt and equity, he said, without divulging the exact equity base saying it will depend on the projects and the quantum of leverage possible on each project. Bhuniya said the investment will be primarily in Delhi NCR, Ahmedabad, Pune, Bengaluru, Mumbai and Pune, and every single location measuring 5 to 30 lakh sqft each -- will be a special purpose vehicle.

The JV will exit an SPV either partly or fully based on the interest it generates from buyers, he added.

Bhuniya said that the forthcoming GST, the make-in-India drive and growing retail and e-tail segments make logistics an exciting prospect in the country.