The Central Warehousing Corporation (CWC), a government-owned entity, has launched a significant initiative to upgrade its warehousing infrastructure by utilising 83 acres of land. This project involves a substantial investment of over INR 700 crore from Blackstone's Horizon Industrial Parks, a global private equity firm. The development will span 70 acres across 13 locations, focusing on creating high-quality warehousing facilities. This deal is notable as it represents the first instance of a foreign investment fund directly bidding for a government contract in India. The initiative aims to modernise India's warehousing sector with a long-term vision and a 45-year management model.
The Central Warehousing Corporation (CWC), a government-owned entity, has started on a major initiative to upgrade its warehousing infrastructure by capitalising 83 acres of land. This initiative involves substantial private investment and aims to enhance India's warehousing network over the long term.
In a notable agreement, Blackstone's Horizon Industrial Parks, a global private equity firm, will invest more than INR 700 crore to develop top-quality warehousing facilities across 70 acres at 13 locations. The development will follow the Design, Build, Finance, and Operate (DBFO) model, where private players, called concessionaires, will manage the properties for 45 years. After this period, the facilities will return to government control. Knight Frank, a real estate consultancy, facilitated this deal. Key projects include new developments in Raipur, Ambattur (near Chennai), and Indore, with a total investment of INR 82 crore to create around 500,000 square feet of warehousing space. RSA Warehousing will develop the Raipur project, TransAsia Shipping will handle Ambattur, and LL Logistics will manage the Indore development.
A unique aspect of this agreement is that it is the first time a foreign investment fund, Blackstone, has directly bid for a government contract in India. This sets a precedent for more international investors to enter India's infrastructure market. Horizon Industrial Parks, which already oversees 24 industrial and logistics parks with a potential development area of 42 million square feet, will manage the redevelopment of these warehouses. The entire process is set to be completed within five years of commencement. The revenues from these warehousing facilities will be deposited into an escrow account managed by CWC. The funds will then be distributed to the concessionaires, as per the terms of the agreement.
The Central Warehousing Corporation's (CWC) initiative to upgrade India's warehousing infrastructure through private investment marks a significant step towards enhancing the nation's logistics capabilities. With Blackstone's Horizon Industrial Parks investing over INR 700 crore to develop 70 acres across 13 locations, this partnership sets a new example for future foreign investments in Indian infrastructure. The project, facilitated by Knight Frank and involving key developments in Raipur, Ambattur, and Indore, is expected to significantly boost warehousing capacity and efficiency. This collaboration not only strengthens India's supply chain but also sets a precedent for more foreign investments in the sector.
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