$1 billion logistics transaction between Lodha, Bain, and Ivanhoe

To develop a next-generation green digital infrastructure platform, Lodha has teamed up with Bain Capital and Ivanhoé Cambridge. In the digital infrastructure space, the platform will establish a pan-India presence, which will include logistics and light industrial parks,.

as well as in-city fulfilment centres. To serve India’s digital economy, the platform will invest $1 billion to create 30 million square feet of operating assets. Each of the three partners will own a 33 percent stake in the property, with Lodha in charge of the development, operations, and management of the assets.

“With the rapid digitization of our economy and the progress of ‘Make in India,’ combined with most global manufacturers’ China + 1 strategy, we see that there is a huge demand for Grade-A digital infrastructure in our country,” said Abhishek Lodha, MD & CEO of Lodha. We’ll focus on creating a global benchmark by building and operating this digital infrastructure to the highest levels of environmental sustainability.”

The first project is a 110-acre logistics and industrial park in Palava, Mumbai, which is well-known for its digital infrastructure. In addition, the platform has begun looking at land acquisitions and developed/under-development projects in these asset classes across India.

“This is an exciting partnership that brings together an experienced real estate developer with deep digital infrastructure capabilities, as well as the complementary support of global investors with long track records of commercial real estate success,” said Ali Haroon, MD at Bain Capital.

“As India enters a digital supercycle, this partnership opens up new perspectives for expanding our logistics portfolio in India, a high conviction thesis well supported by strong sector fundamentals,” said Chanakya Chakravarti, VP & MD, Ivanhoé Cambridge.

“We believe the Indian logistics ecosystem will continue to offer opportunities, fueled by positive trends in urbanisation, domestic consumption, new impetus for the light manufacturing sector, modernising multi-modal infrastructure, and the rapidly evolving e-commerce sector,” says the company.