Proprium Capital currently manages funds with assets under management of approximately $2 billion. Photo: Hemant Mishra/Mint
Mumbai: Proprium Capital Partners, an independent asset manager set up by former employees of Morgan Stanley’s real estate private equity arm, is investing around $100 million in Hyderabad-based Musaddilal Projects Ltd to build a logistics/warehousing platform, said two people aware of the development.
Proprium Capital currently manages funds with assets under management (AUM) of approximately $2 billion. The asset manager’s limited partners include over 50 institutional investors, including government and private sector pension and retirement funds, banks, family offices and sovereign wealth funds. With offices in New York, London, Mumbai, Hong Kong, Sydney and Atlanta, the Proprium team has managed investments in over 15 countries.
“Proprium Capital has tied up with Musaddilal Projects to build a warehousing platform that will develop, own and operate industrial warehouses. They are looking to invest at least $100 million in the venture, which will develop a few million square feet of warehousing space is large cities across the country,” said one of the persons cited above, requesting anonymity, as he is not authorized to speak with the media.
Emails sent to Musaddilal Projects managing director Pramod Gupta and Willem de Geus, founder and partner at Proprium Capital did not elicit any response.
According to the company’s website, Musaddilal Projects is planning to set up 14 logistics centres, creating warehouse space of over a million square feet each. The company has a long-term association with FMCG major Hindustan Unilever Ltd, which is occupying on an exclusive basis, two facilities in Hyderabad and Bengaluru with warehousing space of 250,000 sq.ft and 400,000 sq.ft each respectively.
Currently, Musaddilal Projects is engaged in putting up two fully mechanized modern warehouses of over 300,000 sq.ft each, according to the company’s website.
The Proprium Capital investment is part of a larger ongoing trend, where large institutional investors have collectively committed a few billion dollars worth of investment in the Indian logistics and warehousing space.
In May 2017, IndoSpace and Canadian pension fund CPPIB created a joint venture, IndoSpace Core, to acquire and develop modern logistics facilities in India. CPPIB has made a significant commitment of around $1 billion towards IndoSpace’s assets. Currently, IndoSpace’s portfolio includes around 28 logistics and industrial parks across the country.
In June, Singapore-based Ascendas-Singbridge Group announced a joint venture with Firstspace Realty to enter the Indian industrial logistics and warehousing market. They jointly aim to invest $600 million over the next five to six years and develop around 15 million sq. ft of space.
In April, Mint reported that LOGOS India, a warehousing and logistics investment platform, was close to making its maiden investment in India in the form of a $100 million commitment in Chennai-based warehousing firm Casagrand Distripark Pvt. Ltd.
LOGOS India is a joint venture of LOGOS Group and Assetz Property Group, based in Sydney and Singapore. LOGOS is an integrated logistics real estate specialist, with operations in Australia, China, South-East Asia.
In October, LOGOS India raised $400 million in equity capital from Ivanhoé Cambridge, a real estate subsidiary of Caisse de Dépôt et Placement du Québec (CDPQ), Canada’s second-largest pension fund, and Vancouver-based QuadReal Property Group.