Plans to build assets with average of 5L sq ft space in next 18-24 months, says chief exec.
Bengaluru: Property Share (PropShare), India’s premier tech plat- form for commercial real estate in- vestments, plans to expand its operations and build an assets under management of over ₹1,000 crore across warehousing assets.
The company is looking to tie up assets throughout tier-I and tier-II cities such as Mumbai, Bangalore, Pune, and Lucknow.
“The Indian warehousing market today is similar to the office market in the early 2000s regarding demand and quality. We are targeting 18-24 months to build the portfolio with an average of 5 lakh sq ft of high-quality warehousing assets in these locations. We are looking at 2-3 other warehouses in tier-2 cities,” said Kunal Moktan, co- founder & CEO of Property Share.
The firm owns three warehousing assets in the UK spread over 2 lakh sq ft each and is looking to expand, too. The firm is raising capital against its first India warehousing asset on the platform: a 9.1% yielding Grade A+ warehouse in Jaipur, tenanted to Flipkart, one of India’s top e-commerce players, totalling 191 crore. According to the company, its Flipkart’s largest distribution cum fulfilment centre in the West, processing 200,000 orders per day and 500,000 during Big Billion Days.
The warehousing industry is lik- ely to witness high growth both in terms of rent and capital values as quality and demand are driven by international players like Amazon and Walmart, back- ed by Flipkart. The segment has seen over $10 billion in investment from institutional investors over the last 6-7 years alone.
“As a real estate investor, it, there- fore, makes tremendous sense to own high-quality warehouses to- day in strategic cities at prices that are a discount to replacement costs. As a platform, we see this as an opportunistic and tactical way to play the warehousing and infrastructure growth story that India is witnessing. We will continue to look at adding similar assets to our portfolio,” he said.
Established in 2016, PropShare is India’s first and largest technology-driven real estate investment platform that allows users direct access to institutional-grade commercial real estate assets.
Source- Economic Times
