Everstone Capital to list logistics & warehousing assets worth $2.5 billion as REIT
MUMBAI: Homegrown private equity fund Everstone Capital is planning to list its warehousing and logistics assets valued at $2-2.5 billion as a Real Estate Investment Trust (REIT), said four people involved in the process. Everstone is looking to raise more than $3 billion over the next four years through its arm IndoSpace.
The fund owns 8.5 million sq ft of industrial real estate property under IndoSpace and has appointed investment banks Citi and Jones Lang Lasalle to help it with its Singapore and Indian listings.
With the recent Budget removing dividend distribution tax on such REITs, a lot of traction has been created in the market for such listings by Indian developers. “Two or three large sovereign funds are in talks to pick up a minority stake in IndoSpace ahead of the REIT listing,” said a person close to the development, adding, “These funds are from Canada, Singapore and the Middle East.”
Everstone Capital has the largest industrial real estate portfolio in India with around 8.5 million of operational and leased real estate warehousing and logistics space with another 20 million of under-construction warehouses that will come to the market over the next 36 months.
“Everstone has spent around $1.1 billion in developing these industrial real estate assets through debt and equity and it expects around $2-2.5 billion in equity valuation for the REIT,” said a person directly involved in the process.
The fund will invest incremental $1-1.5 billion in developing around 40 million sq ft of warehouses over five years making Everstone Capital the largest FDI investor in industrial real estate and infrastructure sector in India.
“All the new assets will eventually come under the REIT structure,” another person involved in the process said.
Sameer Sain, managing partner, Everstone Group, could not be reached for comment as he was travelling overseas.
IndoSpace, joint venture between Everstone Capital and Realterm Global, has a pan-India presence and is said to be bigger than top 10 players put together in the space.
It counts top global and domestic companies such as Nissan, P&G, Loreal, DHL, Samsung, Kuo and Levi’s among its tenants. IndoSpace, that has all assets held through separate SPVs, will first look at listing in Singapore.