Ascendas-Singbridge ropes in Temasek as investor for $300m India logistics programme

Photo from Ascendas-Singbridge Group.

To tap into opportunities in the Indian logistics sector, Singapore-based Ascendas-Singbridge Group has launched the Ascendas India Logistics Programme in which Singapore investment firm Temasek has come on board as a principal investor.

Temasek and Ascendas-Singbridge Group have jointly committed Rs 2,000 crore (around $300 million) to invest in logistics and industrial real estate in key locations in India.

According to an official statement, the programme will invest in warehousing and manufacturing hubs in Mumbai, National Capital Region, Pune, Chennai, Bangalore, and Ahmedabad, among others. It is targeting to develop a portfolio of 13 to 15 million sq ft of space.

The launch follows Ascendas-Singbridge floating a joint venture with real estate firm Firstspace Realty last year to mark its foray into India’s industrial logistics and warehousing market in India. At that time, the two partners had announced that they would invest up to $600 million over the next 5-6 years in the venture.

“Given strong domestic consumption trends, investments in high quality logistics and industrial facilities are necessary to support India’s economic growth in the years to come. We welcome Temasek’s investment in the Programme, which will leverage Ascendas-Firstspace’ global customer base and local execution capabilities to meet the needs of the future economy,” said He Jihong, Ascendas-Singbridge Group Chief Investment Officer.

To date, it has two seed assets with 1.25 million sq ft of operational space and over 4 million sq ft in development potential.

Ascendas-Singbridge Group, which has assets under management over S$20 billion, set up its first India-focused fund, Ascendas India IT Parks Trust, in 2005. Two years later, it set up Ascendas India Development Trust, a private real estate fund, focusing on integrated property development projects, and Ascendas India Trust, Asia’s first listed Indian property trust launched on the Singapore Exchange.

In 2013, the Ascendas India Growth Programme was launched with Singapore’s sovereign wealth fund, GIC Pte Ltd as a principal investor.

Ascendas-Singbridge has also launched an industrial real estate development platform in India dedicated to creating world-class logistics and industrial infrastructure across the country.

Ascendas-Singbridge currently has over 14.5 million sq ft of assets under management in India valued at around S$2.5 billion.

According to a recent report by real estate advisory firm JLL India, the country is set to witness investments close to Rs 50,000 crore for in creation of warehousing facilities across the country between 2018 and 2020.

“Warehouse and logistics is one of the biggest growth areas that have emerged in recent times. We have seen Rs 125,000 crore invested through private equity in warehousing space since 2014. While it made up approximately 10% of total PE investment in 2017, the share is expected to grow claiming larger share of investment,” Ramesh Nair, CEO and Country Head, JLL India had said.

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