With an eye on the immense potential in the logistics sector in India, Singapore-based firms Temasek Holdings and Ascendas-Singbridge Group have chalked out plans to invest nearly US$300 million in logistics and industrial real estate projects.

Ascendas-Singbridge has launched its Ascendas India logistics programme. Temasek, a global investment company headquartered in Singapore, is a principal investor in the programme. Ascendas-Singbridge is jointly owned by Temasek Holdings and JTC Corp.

The commitment of capital for the programme follows the recent establishment of Ascendas-Firstspace, a joint venture between Ascendas-Singbridge and Firstspace Realty to deliver state-of-the-art logistics and industrial facilities across major warehousing and manufacturing hubs in India.

Jihong He, chief investment officer at Ascendas-Singbridge, said that 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 view the logistics and industrial sector as a good proxy to growing middle-income populations and transforming economies. The positive momentum of the sector, underpinned by the Indian government’s Make in India vision as well as healthy consumption trends, present opportunities for us to further invest in India’s continued growth,” said Promeet Ghosh, managing director, India, at Temasek Holdings.

Aloke Bhuniya, CEO of Ascendas-Firstspace, said: “With its institutional backing and local execution ability, Ascendas-Firstspace is the leading player in India’s logistics and industrial real estate sector. We are excited to further strengthen our position, and are privileged to have the support of Ascendas-Singbridge and Temasek.”

Tapping into India’s growing logistics sector, the programme will invest in projects in key warehousing and manufacturing hubs in Mumbai, the National Capital Region, Pune, Chennai, Bengaluru and Ahmedabad, among others.

The programme targets to develop a portfolio of 13 to 15 million sq ft of space. 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.

By Jagdish Kumar

India Correspondent | Mumbai