Raheja Corp join hands with ProLogis

Mumbai: Real estate company K Raheja Corp and Denver-based ProLogis, a large-scale owner, manager and developer of distribution facilities, have entered into a 50:50 joint venture agreement for warehousing and logistic infrastructure development in India.

The joint venture will acquire land, develop properties and manage assets. Initial focus will be on Mumbai, Chennai, Delhi, Bangalore, Kolkata, and Pune with an investment of Rs 2,300 crore.

To begin with, the promoters have acquired 27 acres at Loni, near Pune. The joint venture proposes to invest develop 7.5 million sq ft in three years and a total of 25 million sq ft by the end of five years.

Mr C.L. Raheja, Chairman of K Raheja Corp Group, said “a majority of the existing distribution space is functionally obsolete and we believe this new partnership will be successful in meeting the growing demand for high quality logistics facilities here.”

The Group has a strong presence in retail and hospitality, apart from its core business of realty. The company owns retail brands such as Shoppers Stop, Inorbit Mall, HyperCity and Cross Word chain.

Mr Jeff Schwartz, Chairman and Chief Executive Officer of ProLogis, said over the last few years, ProLogis had achieved tremendous success in Asia following the establishment of operations in Japan, China and South Korea. Launching in India, one of Asia’s most vibrant growth markets, is a logical next step and this would create value for shareholders and provide reliable access to new warehouse space for its global customers.

ProLogis had seen demand for modern warehouse space in India rise steadily over several years, owing to strong growth in manufacturing, widespread infrastructure improvement and greater interest among companies to outsource logistics requirement, he said.

ProLogis is said to have $36.3 billion in assets under management with 510.2 million sq ft of industrial space in 118 markets across North America, Asia and Europe.