New Delhi: Realty player Hiranandani Group’s subsidiary GreenBase has formed a 50:50 joint venture with Blackstone Investments Group for development of logistics, industrial and warehousing properties that will entail an investment of Rs 2,500 crore over the next 3-4 years.
In the beginning, the JV will develop about 12 million sq ft of logistics, industrial and warehousing properties that will spread over various land parcels like 115 acres in Chennai’s industrial suburb Oragadam, 267 acres in Pune, 73 acres in Nashik and 25 acres in Durgapur, West Bengal. Later, the JV will also include other assets that will be developed in other places.
“We have a very bullish view on the economy in the long term. Logistics and warehousing will be one of the major beneficiaries of this growth. The Joint Venture’s investment (estimated to be Rs 2,500 crores over the next 3-4 years) will also contribute to economic growth as well as employment generation in the relevant locations,” said Niranjan Hiranandani, Founder & Managing Director, Hiranandani Group in a statement.
The logistics costs in India are around 13 percent of the GDP, way higher than about 8 percent in developed countries. Consequently, the JV sees immense possibilities in India.