Backed by large-scale platforms, portfolios, and greenfield investments, India’s warehousing sector is being led by a wave of foreign capital.
Foreign investors are pulling ahead of their Indian counterparts in India’s booming warehousing sector, pouring billions into platform deals, portfolio acquisitions, and greenfield assets. As global interest swells, the sector is seeing a lopsided flow of capital—foreign deals accounted for over 90% of the total USD 11 billion invested in the last two years, while Indian investments lag far behind.
Xander Group Portfolio Sale (~Rs 2,000 crore / USD 240 million) - Xander is selling 3.5 million sq. ft. of Grade-A warehousing across Chennai, Bhiwandi, and Kolkata. The deal is in advanced stages, with global investors like MSREI, Ascendas-Firstspace, Horizon Industrial Parks, and Alta Capital’s LogiCap in the fray.
Alta Capital-Hillhouse Acquisition from IndoSpace (USD 100 million) - Alta Capital and Hillhouse acquired 2.5 million sq. ft. of warehousing assets in Pune and Chennai from IndoSpace. The move expanded LogiCap’s portfolio to over 11 million sq. ft., highlighting a growing demand for stabilized income-yielding assets.
Blackstone-Backed Horizon Industrial Parks Portfolio - Horizon Industrial Parks, backed by Blackstone, is rapidly expanding with over 20 million sq. ft. across NCR, Bengaluru, Pune, and Hyderabad. It serves high-profile tenants like Amazon and Flipkart, reinforcing Blackstone’s long-term bet on India’s logistics future.
Brookfield’s Logistics Expansion in India - Brookfield is building Grade-A warehousing parks in Maharashtra and Tamil Nadu as part of its broader infrastructure strategy. Though investment figures remain undisclosed, the expansion signals deep commitment to Indian industrial assets.
Prologis Entry Anticipated (2025) - Prologis, the world’s largest logistics REIT, is reportedly exploring entry into India through a joint venture or acquisition. Its arrival could significantly raise the bar, bring REIT-grade benchmarking and boost global investor confidence in Indian warehousing.
Indian institutional investors remain underrepresented in warehousing, but select domestic players like Welspun One Logistics Parks are rapidly gaining ground. Backed by the Welspun Group, the platform has raised over Rs 2,000 crore for its second logistics fund. Its most ambitious project is a Rs 2,700 crore (USD 325 million) logistics and warehousing park at Navi Mumbai’s JNPT SEZ, spanning 4.45 million sq. ft., including 3.95 million sq. ft. of warehousing.
Why Foreign Investors Choose India?
- Yield Arbitrage: Indian warehousing offers cap rates of 7–8%, far higher than developed markets.
- De-risked Returns: With strong tenancy, long leases, and institutional-grade construction, assets now resemble global REIT-level portfolios.
- Macroeconomic Tailwinds: The government's focus on infrastructure—from freight corridors to new highways—enhances regional connectivity and asset value.
- Demand Dynamics: E-commerce and 3PL players like Amazon, Flipkart, and DHL continue to absorb vast amounts of space.
This has turned Grade-A warehousing into a “core-plus” investment for global funds. What Comes Next?
A decade ago, warehousing was fragmented, low-margin, and riddled with inefficiencies. Today, it’s a legitimate institutional asset class attracting pension funds, sovereign wealth, and private equity. Looking ahead, market watchers expect:
- More platform-level M&A, like Brookfield’s playbook in commercial real estate.
- Regional expansion into Tier 2 cities like Coimbatore, Lucknow, and Indore.
- Stronger domestic capital flows, especially from family offices & infrastructure funds.
While foreign capital currently dominates the Indian warehousing boom, the landscape is shifting. Indian platforms are catching up, armed with deeper institutional knowledge, better financing options, and the confidence of marquee anchor tenants.
