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Shapoorji Pallonji Real Estate is planning to enter the warehousing sector, in order to further diversify its portfolio and tap the growing segment. According to the company’s CEO, the company is in talks for strategic partnerships.
Shapoorji Pallonji CEO Venkatesh Gopalakrishnan told PTI that the company is in the process of identifying locations to develop grade A warehousing stock across the country. He stated, “We have a large residential portfolio and now we want to build a warehousing platform. This is mainly because only residential is also risky. Initially, we were commercially heavy and now we are residential heavy.”
According to Gopalakrishnan, “Currently the warehousing sector is cluttered. With the introduction of GST, there is a consolidation in the warehouse structure in the hub and spoke model. We will have to do more research and analysis. But we feel warehousing is a long-term business and we want to be in this sector.”
He further added, “Warehousing is both greenfield and brownfield opportunity. We are also in talks with global firms for making the foray. It is important to have a good partner who understands the international standards because the sector has to be seen as a product offering rather than as a structure or a shed.”
He ended by stating, “We are identifying locations where we can set up Grade A warehousing facilities and we believe it can be done across the country.” Also, according to a report, the company is sitting on a debt of around Rs 4,000 crore and is looking to sell its commercial projects as a strategy to focus on core businesses.
