SINGAPORE - Ascendas-Singbridge and principal investor Temasek will together invest some 20 billion rupees (S$398.24 million) in projects in warehousing and manufacturing hubs in the key Indian cities of Mumbai, National Capital Region, Pune, Chennai, Bangalore and Ahmedabad, among others.
The initiative falls under the auspices of Ascendas-Firstspace, a 2017 joint venture between Ascendas-Singbridge and Indian industrial real estate specialist Firstspace Realty, whose mandate is to deliver "state-of-the-art logistics and industrial facilities across major warehousing and manufacturing hubs in India". It will undertake the investment strategy for the new Ascendas India Logistics Programme.
The programme is aiming to develop a portfolio of 13 to 15 million sq ft of space, and to date has two seed assets with 1.25 million sq ft of operational space and over 4 million sq ft in development potential, Ascendas-Singbridge said in a media statement.
"We view the logistics and industrial sector as a good proxy to growing middle-income populations and transforming economies. The positive momentum of the sector, underpinned by the Indian government's Make in India vision as well as healthy consumption trends, present opportunities for us to further invest in India's continued growth," noted Temasek's managing director for India Promeet Ghosh.
He added that the partnership with Ascendas-Singbridge will help "address thegrowing demand for quality logistics and industrial space, and provide companies with the support they need to scale and succeed in India".
Due to strong domestic consumption trends, investments in high quality logistics and industrial facilities are "necessary to support India's economic growth in the years to come", said Ascendas-Singbridge's group chief investment officer He Jihong.
"We welcome Temasek's support and investment in the programme, which will leverage Ascendas-Firstspace's global customer base and local execution capabilities to meet the needs of the future economy," Ms He said.