Embassy partners Warburg Pincus to enter into warehousing business.

Real estate developer Embassy Group said it formed a $250 million joint venture (JV) with private equity firm Warburg Pincus to build warehouses across the country, tapping 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. This is Warburg's maiden foray into the warehousing business in India.

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.

TOI