HDFC’s New Fund Plans Logistics Foray, Targets Raising $500 Million
New Delhi: A new private equity fund of mortgage lender Housing Development Finance Corp (HDFC) will target raising $500 million from offshore investors for domestic property projects, including in warehousing and logistics, a senior company executive said.
Asset manager HDFC Property Fund has mainly invested in housing projects through earlier funds but, for the first time, plans to invest in logistics and warehousing with the new fund, becoming the latest investor seeking to cash in on India’s e-commerce boom.
“We think there is a good opportunity that exists in this business,” K G Krishnamurthy, CEO at the fund manager, told Reuters, adding that it will likely invest in building and leasing warehouses.
With more consumers shopping online, India’s $110 billion logistics and warehousing sector is stretched. Fuelled by online retailers, supply of modern warehouses in India is set to more than double by 2020 to 200 million square feet, property consultancy JLL estimates.
Dutch pension fund manager APG and US buyout group Warburg Pincus also have plans to invest in modern storage space in India, which is scarce at present and rents are comparatively low.
Read full article: NDTV
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