Joint venture with Indian industrial real estate specialist Firstspace marks Group’s first foray into India’s logistics and industrial real estate sector

15 June 2017, Singapore / Mumbai – Asia’s leading sustainable urban development and business space solutions provider Ascendas-Singbridge Group (“Ascendas-Singbridge”) is partnering Indian industrial real estate specialist Firstspace Realty (“Firstspace”) to deliver state-of-the-art logistics and industrial facilities across major warehousing and manufacturing hubs in India.

15 June 2017, Singapore / Mumbai – Asia’s leading sustainable urban development and business space solutions provider Ascendas-Singbridge Group (“Ascendas-Singbridge”) is partnering Indian industrial real estate specialist Firstspace Realty (“Firstspace”) to deliver state-of-the-art logistics and industrial facilities across major warehousing and manufacturing hubs in India.

The Ascendas-Firstspace platform is a joint venture formed by Ascendas-Singbridge and Firstspace to meet infrastructure needs of businesses tapping into high-growth industrial verticals such as third party logistics, e-commerce, automobiles, fast-moving consumer goods, modern retail and manufacturing in India. By combining Firstspace’s local knowledge, networks and execution capabilities, with Ascendas-Singbridge’s international best practices, governance standards and track record Ascendas-Firstspace plans to build and manage a network of logistics and industrial parks across key nodes in the country.

Mr Miguel Ko, Ascendas-Singbridge Group Chief Executive Officer, said: “We have been in India for over two decades, developing iconic business and IT Parks. We are a trusted brand with renowned operational capabilities and loyal client base. Entering the industrial and logistics sector is a natural progression, and we expect to meet the growing demand for quality manufacturing and logistics space. We have assembled an entrepreneurial team to lead the way, who will be supported by our experienced India and global operations.”

Mr Aloke Bhuniya, Ascendas-Firstspace Chief Executive Officer, said: “We are excited about opportunities in the industrial and logistics infrastructure space, which are expected to increase exponentially due to structural changes in market place, growth of consumption and increase in share of manufacturing in India’s GDP. The sector, which is still evolving, will see consolidation and improvements in quality, transparency and corporate governance due to flows of institutional capital into the sector”.

Ascendas-Singbridge is an established brand with operational capabilities across the real estate value chain and has significant experience in operating and developing industrial real estate across major global markets. It currently owns and manages over 30 million sq ft of industrial space across Asia Pacific.

Founded by pioneers in modern manufacturing and warehousing facilities in India, Firstspace specialises in the development and management of local industrial real estate. Its founding partner Mr Bhuniya is a logistics real estate industry expert with deep industry networks and local expertise. Prior to setting up Firstspace, he was Managing Director of IndoSpace Capital Advisors, India’s first institutional industrial real estate developer.

The Ascendas-Firstspace joint venture will invest in projects aimed at the development of logistics and factory spaces in Mumbai, National Capital Region (NCR), Pune, Chennai, Bangalore and Ahmedabad, and top warehousing and manufacturing hubs in India. Over the next five to six years, it aims to develop close to 15 million sq ft of space, and will be managed by Ascendas-Firstspace.

Temasek and Ascendas-Singbridge Group have jointly committed INR 20 billion (approx. S$400 million) to invest in logistics and industrial real estate in key locations in India

Ascendas-Firstspace, the platform established by Ascendas-Singbridge and Firstspace Realty in 2017, will execute the investment strategy for the programme.

Ascendas-Singbridge, Asia’s leading sustainable urban development and business space solutions provider, has launched Ascendas India Logistics Programme (“Programme”). Temasek, a global investment company headquartered in Singapore, is a principal investor in the Programme.

The commitment of capital for the Programme follows the recent establishment of Ascendas-Firstspace, a joint venture between Ascendas-Singbridge and Firstspace Realty (“Firstspace”), to deliver state-of-the-art logistics and industrial facilities across major warehousing and manufacturing hubs in India.

Ms He Jihong, Ascendas-Singbridge Group Chief Investment Officer, said: “Ascendas-Singbridge has over 20 years of experience in India and we are committed to India’s real estate growth story. Given strong domestic consumption trends, investments in high quality logistics and industrial facilities are necessary to support India’s economic growth in the years to come. We welcome Temasek’s support and investment in the Programme, which will leverage Ascendas-Firstspace’s global customer base and local execution capabilities to meet the needs of the future economy.”

Mr Promeet Ghosh, Managing Director, India, at Temasek, said, “We view the logistics and industrial sector as a good proxy to growing middle-income populations and transforming economies. The positive momentum of the sector, underpinned by the Indian government’s Make in India vision as well as healthy consumption trends, present opportunities for us to further invest in India’s continued growth. We are pleased to partner with Ascendas-Singbridge in this new venture which will help address the growing demand for quality logistics and industrial space, and provide companies with the support they need to scale and succeed in India.”

Mr Aloke Bhuniya, Chief Executive Officer of Ascendas-Firstspace, said: “With its institutional backing and local execution ability, Ascendas-Firstspace is the leading player in India’s logistics and industrial real estate sector. We are excited to further strengthen our position, and are privileged to have the support of Ascendas-Singbridge and Temasek.”

Tapping on India’s growing logistics sector, the Programme will invest in projects in key warehousing and manufacturing hubs in Mumbai, National Capital Region, Pune, Chennai, Bangalore, and Ahmedabad, among others. The Programme targets to develop a portfolio of 13 to 15 million sq ft of space. To date, it has two seed assets with 1.25 million sq ft of operational space and over 4 million sq ft in development potential.