Global real estate firm Ivanhoe Cambridge and Asia-Pacific logistics specialist LOGOS are set to invest over INR 1,100 crore to develop a logistic park in Pune’s Chakan, making it the largest foreign direct investment (FDI)-driven integrated private industrial and logistics development in India.
The company will continue to explore further investment opportunities in Maharashtra, Tamil Nadu, and Gujarat.
LOGOS and its venture partner, Ivanhoe Cambridge, have acquired an additional 66 acres in Chakan, taking the Chakan Industrial Estate’s total land area to 143 acres. This transaction follows their acquisition of 77 acres here in May.
“India continues to be a bright spot in the global economy. Pune is one of India’s key growth markets, benefiting from the strong growth of onshoring as companies diversify their manufacturing locations in India. Maharashtra’s economy has consistently grown by 7% per annum over the past few years in line with this trend, and we expect this growth to continue as this market benefits from this shift in manufacturing,” said Trent Iliffe, Co-CEO, LOGOS.
Both the land parcels are adjacent to the Chakan industrial area, a region that is considered one of Asia’s largest industrial hubs with more than 1,000 manufacturing enterprises, including electronics, engineering, automobile, and E-Vehicles companies.
The combined 143-acre site is expected to have potential for total development of over 3.5 million square feet to meet the robust new economy demand for prime industrial development in the region.
“This acquisition demonstrates our long-term commitment and confidence in the Indian logistics and industrial sector, with high demand for holistic, modern, and responsible AAA-grade infrastructure helping India’s manufacturing growth and related demand for quality and sustainable development. The site is at the heart of the automotive hub and will support ancillary units. We will continue to explore further investment opportunities in Maharashtra, Tamil Nadu, and Gujarat,” said LOGOS India CEO Mehul Shah.
The Chakan Industrial Estate represents LOGOS’ fifth project in India, including developments in Bengaluru, Chennai, the National Capital Region, and Pune, with a total potential development area of more than 10 million sq ft.
“This new site acquisition further deepens our presence in the Indian logistics sector as we continue to build scale in a high-confidence sector. Our extensive presence in this asset class and our local resources enable us to support the expansion of our logistics portfolio in the APAC region,” said Pallavi Bhargava, Senior Director, Investments and Asset Management, Asia-Pacific, Ivanhoe Cambridge.
LOGOS Chakan Logistics Estate is being acquired within the LOGOS India Logistics Venture, anchored by Ivanhoe Cambridge, which has a USD 400 million commitment to develop and own high-quality, modern industrial and logistics facilities in key Indian markets.
LOGOS, part of the ESR Group, is a logistics specialist with operations across 10 countries in Asia Pacific.
In line with Ivanhoe Cambridge and LOGOS commitment to sustainability, the estate will incorporate environmental initiatives, including a minimum of seven acres of Miyawaki Forest Plantation, solar power generation, groundwater recharge and distribution to warehouses, and the estate’s common infrastructure.
In India, a favourable regulatory environment, along with the government’s support through policy and reforms, has started to boost spending on infrastructure and, in turn, the overall demand for modern warehousing.
