The Central Warehousing Corporation (CWC), owned by the Union government, has successfully monetized 83 acres of assets to modernize and develop its warehousing properties. As part of this initiative, Horizon Industrial Parks, backed by private equity firm Blackstone, has committed to developing Grade-A warehousing facilities across 70 acres in 13 locations, with an investment exceeding Rs 700 crore.
Property consultancy firm Knight Frank assisted CWC in executing the deal. Under this monetization model, investors, referred to as concessionaires, will operate the warehousing facilities for 45 years under a design, build, finance, and operate (DBFO) model. After this period, the properties will revert to the government.
Three key locations involved in this initiative include Raipur, Ambattur near Chennai, and Indore, with a combined development cost of Rs 82 crore. These sites, awarded to RSA Warehousing, TransAsia Shipping, and LL Logistics respectively, have a development potential of approximately 500,000 square feet. This marks the first instance of an overseas investment fund directly bidding for a government tender.
Horizon Industrial Parks currently manages 24 industrial and logistics parks across ten markets, with a total development potential of 42 million square feet. According to a release, the redevelopment of these warehouses will be completed within five years from the appointed date. All project revenue will be deposited into an escrow account managed by CWC and subsequently distributed to the concessionaires.
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