The Central Warehousing Corporation (CWC) has entered a 45-year partnership with Horizon Industrial Parks, managed by Blackstone Real Estate funds, to oversee 13 last-mile logistics assets. This collaboration is part of CWC's asset monetisation strategy, which includes developing 2.4 million square feet of warehousing space with an investment of INR 700 crore. The project spans key industrial hubs like the National Capital Region, Chennai, Mumbai, Pune, and Bengaluru. CWC will manage revenue through an escrow account and plans to return the facilities to public sector control after the term, ensuring long-term public ownership and oversight.
The Central Warehousing Corporation (CWC), a leading public warehouse operator, has entered into a significant 45-year partnership with Horizon Industrial Parks, a logistics platform owned and managed by Blackstone Real Estate funds. This agreement grants Horizon Industrial Parks the responsibility to manage a portfolio of 13 last-mile logistics assets, marking a pivotal step in CWC's asset monetisation strategy. These assets offer a development potential of 2.4 million square feet, with an anticipated investment of approximately INR 700 crore.
CWC has allocated 83 acres of prime warehousing space for development under this initiative, with Blackstone's Horizon Industrial Parks securing the lion's share. CWC awarded the remaining warehouse projects to RSA Warehousing, TransAsia Shipping, and LL Logistics. Knight Frank India has played a crucial role in advising CWC throughout these transactions, ensuring a seamless process. In line with its asset modernisation agenda, CWC has earmarked prime warehousing properties across more than 50 locations for redevelopment under a public-private partnership (PPP) model.
This ambitious initiative involves a total investment of INR 782 crore across 16 properties. Knight Frank and CWC collaboratively strategise the concession agreement, meticulously managing the bid process for this expansive programme. Under the terms of the agreement, the selected concessionaire will be responsible for designing, building, financing, and operating these facilities over the 45-year concession period. At the end of this term, the facilities will return to public sector control, preserving public ownership and oversight.
They expect to complete the redevelopment of these assets within five years from the appointed date. During this period, CWC will deposit all project revenue into an escrow account and subsequently disburse the funds to the concessionaire. This structured financial arrangement ensures transparency and accountability throughout the development process. Amit Singh, managing director of CWC, highlighted the corporation's main goal, which is to drive the development of high-quality warehousing and logistics spaces in India, ultimately reducing logistics costs while preserving the quality of goods.
Singh's statement highlights the broader impact of this initiative on India's logistics sector, which is poised for significant transformation through these developments. Currently, multiple bids for 34 locations across India are under rigorous evaluation, highlighting the competitive interest in this large-scale project. Notably, this marks the first instance where foreign investment funds have directly submitted bids for government tenders, reflecting the growing confidence of international investors in India's logistics and warehousing sector.
The company will transform these government-owned assets into grade-A facilities, catering to sectors such as e-commerce, retail, third-party logistics, and cold chain. The portfolio primarily concentrates on key industrial hubs, including the National Capital Region (NCR), Chennai, Mumbai, Pune, and Bengaluru. As it stands, CWC manages 25 industrial and logistics parks spread across more than 1,700 acres, encompassing an area of 43 million square feet. This latest initiative represents a significant expansion of their already extensive portfolio, positioning CWC as a central player in India's rapidly evolving logistics landscape.
Advertisement
Facebook
Whatsapp
