Union government-owned Central Warehousing Corporation announced that it has successfully monetised 83 acres of assets to modernise and develop the warehousing properties. Private equity firm Blackstone's Horizon Industrial Parks has committed to develop Grade-A warehousing facilities across 70 acres in 13 locations, with an investment of over Rs 700 crore.
Property consultancy Knight Frank helped Central Warehousing Corporation with the execution of the deal. In the monetisation model, the investors, referred to as the concessionaires, will operate the warehousing facilities for 45 years under the design, build, finance, and operate model, after which the locations will be reverted to the government.
Three locations, which have a total development cost of Rs 82 crore, are in Raipur, which was awarded to RSA Warehousing, Ambattur near Chennai, awarded to TransAsia Shipping, and in Indore, which will be operated by LL Logistics. These three locations have a development potential of around 500,000 sq ft. This was the first time that an overseas investment fund bid directly for a government tender.
Horizon Industrial Parks manages 24 industrial and logistics parks in ten markets, with a total development potential of 42 million sq ft. The redevelopment of the warehouses will be completed within five years from the appointed date, the release said, and all project revenue will be deposited to an escrow account managed by the Central Warehousing Corporation, which will be distributed to the concessionaires of the warehouses.
