Singapore-based logistics company, Ascendas Singbridge has merged with Bengaluru-based Firstspace Reality to create a joint venture and named Ascendas-Firstspace. Moreover, they have acquired industrial and logistic warehouse on 15 million sq. ft. and planning to start operation without wasting much time. The land will charge around ₹3200 – ₹3800 Crore ($500-$600 Million) in the coming five-six years. Ascendas has been holding the market from past 23 years, in India and has been engaged in providing space for the IT sector, so that they can also grow.
Aloke Bhuniya, Chief Executive of Ascendas-Firstspace has commented that “The investment involves both debt and equity, where equity base will depend on the projects and the quantum of leverage possible on each project, every single location measuring 5 to 30 lakh sq. ft. each — will be a special purpose vehicle. The JV will exit an SPV either partly or fully based on the interest it generates from buyers,”
Shyam Arumugam, Associate Director and Senior Officer of Colliers International India has stated that “The organised warehousing sector is poised for an interesting time ahead in the short to medium term, as the envisaged spurt in demand for organised top quality warehousing is expected to exceed available quality supply in major cities across India. The dearth in quality supply and escalating land prices have always remained the woes of large manufacturing companies and ecommerce companies that are constantly expanding their footprint.”