Landmark Capital, managing real estate investments through SEBI registered alternative investment funds (AIFs) and managed accounts, is planning to raise Rs 500 crore through Landmark Warehousing & Logistics Fund. Total fund corpus includes a green-shoe option of Rs 200 crores.
The fund is launched with an objective to generate superior risk-adjusted returns by investing in high-quality Grade-A warehousing and logistics opportunities.
Landmark Capital is focusing on non-speculative built-to-suit assets and diversification across geographies to ensure effective risk mitigation. The fund’s deal pipeline accounts for over 400 acres of land with marquee names as potential anchor tenants.
“The growing economy, changes in consumer tastes and behaviour, and digitally savvy millennial consumers has made the Indian warehousing sector an attractive investment opportunity. Through this fund, we are aiming to bring proven global themes which are under-penetrated in the Indian market especially in Grade-A industrial assets including warehousing and industrial parks,” said Ashish Joshi, Founder & CEO, Landmark Capital.
The uncertainty created by the pandemic has been a big boon to e-commerce and is acting as a huge catalyst for the warehousing and logistics industry. The convenience, choice, and reliability of e-commerce platforms are creating unique opportunities in the warehousing sector for large institutional players in the market including tier 2 and tier 3 cities.
Landmark Capital is working at identifying, investing, and developing niche asset classes such as warehousing, cold storage, and logistics along with opportunistic investments in other real estate asset classes.
The team has managed over 50 investments in high-quality real estate asset classes including commercial, warehousing, retail, residential, and plotting, across 12 major cities in India. Landmark Capital has recently launched a new scheme – Landmark Warehousing and Logistics Fund to invest in high-quality, built-to-suit warehouses in key locations near high consumption centers in India.
The expected growth in demand for warehousing is also likely to attract investments in this space with expectation of higher returns. It is estimated that India will see approximately 7 million sq ft logistics space demand in its urban centres by 2022, which underlines the importance and pace at which the segment is growing, JLL India said in a recent report.