The International Finance Corporation (IFC), a part of the World Bank group, has proposed to invest up to $75 million in select special purpose vehicles (SPVs) indirectly owned by IndoSpace Logistics Parks III LP, it said in a disclosure.
IndoSpace Logistics Parks III LP is a $580-million 2018 vintage fund owned by industrial real estate and warehousing developer IndoSpace, which is backed by private equity firm Everstone Group. Other promoters of the company include GLP and Realterm.
The fund is managed by Singapore-based IndoSpace Capital Asia Pte Limited, which invests in warehousing and industrial property assets in India through various SPVs.
IFC’s investment will be in the form of straight senior loans to various SPVs that own and operate the industrial and warehousing properties, the disclosure said. The long tenor is also designed to provide a financial cushion as the parks emerge from the slowdown; allowing the fund flexibility to capitalise on opportunities and manage market risks.
IFC anticipates that the project will provide a significant positive step forward to the Indian warehousing and industrial property market, which is in its evolutionary phase and now going through a severe slowdown due to the global pandemic.
IndoSpace has taken its total commitment to India to above $3.2 billion. Its first fund IndoSpace Logistics Parks I was raised in 2009 with a corpus of $240 million. Its second fund IndoSpace Logistics Parks II raised $344 million in 2014.
Currently, IndoSpace has 36 industrial and logistics parks across India with 37 million square feet of developed and under development facilities and continues to develop new facilities to cater to the needs of its clients. Its customers include IKEA, Amazon, Nissan, PepsiCo, DHL, Leoni, Steelcase, Kubota, Ericsson, Bosch and Delphi.