The storage company IndoSpace has revealed that it has sold Alta Capital 2.5 million square feet of fully constructed and leased warehouse space for about $100 million. This transaction is the second “core” deal that Singaporean asset management company Hillhouse Investments has made in the warehousing sector. Alta Capital is the company’s operating partner in India.

IndoSpace’s only financial advisor on the transaction was Avendus Capital. According to an announcement from Avendus, the warehouse assets included in the agreement are situated in Sri City, Andhra Pradesh, and Pune, Maharashtra. According to the announcement, a variety of manufacturing, e-commerce, and third-party logistics companies have leased the assets.

Prateek Jhawar, managing director and head of Avendus Capital’s investment banking division for real estate and infrastructure, said, “Alta Capital’s acquisition reflects the sustained interest of global investors in India’s industrial warehousing and logistics sector, further underscoring Avendus’ market leadership in this space. We ran a tight process which attracted participation not only from a clutch of global strategic and financial investors but also from select family offices and wealth management firms.”

Data from analytics firm Tracxn shows that IndoSpace, which is supported by investors including CPPIB and GLP, has also received investments from the Qatar Investment Authority and IFC, among others. With locations in 11 cities and more than 50 logistics parks, IndoSpace’s portfolio spans 58 million square feet. However, Alta Capital has stated that it wants to increase the size of its warehouse property to over 11 million square feet.

Private equity firms, like Alta Capital, have made large investments in the transportation and warehousing sector this year. Reliance Retail Ventures’ warehouse assets received investments of around Rs 13,000 crore from the Abu Dhabi Investment Authority (ADIA) and KKR earlier in 2024. Horizon Business Parks, owned by Blackstone, committed in September to investing Rs 700 crore to modernize and run Central Warehousing Corporation’s assets utilizing a design-build-finance-operate-transfer model.

In addition, Blackstone has worked with Indian investors in the field, including the Hiranandani Group, whose joint venture Greenbase Industrial and Logistics Parks has expanded its operations in Chennai and other cities. They have also been actively exploring other potential sites, including Bhiwandi and Pune.

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