The funding will provide Indospace with long-term finance in these times of the Covid-19 pandemic to continue investing and developing select projects envisaged under the fund over the next two years. IFC anticipates that its commitment will provide a significant positive step forward to the Indian warehousing and industrial property market, which is in its evolutionary phase and now going through a severe slowdown due to Covid-19.
If the fund is successful in developing and offering its properties in time for companies
to set up operations, it will help demonstrate a path of recovery for the sector while relying on private investment. The project will contribute to the resilience of real sector markets by enabling business infrastructure that will ensure a continued supply of goods and services at affordable prices and limit disruptions along supply chains, thereby mitigating the effects of an economic downturn.
The fund is an existing portfolio client of IFC. In 2018, IFC had committed an equity of up to $25 million, not to exceed 20 per cent of total commitments, in IndoSpace Logistics Parks III, LP. The company's sponsors include PE funds Everstone, Realterm and GLP, an investment manager and business builder in logistics, real estate, infrastructure, finance and related technologies.
According to the company's website, Indospace has a portfolio of around 36 million square feet across 35 logistics and industrial parks, including developed parks and those under various stages of development across the country. The company claims to be the largest network of industrial and warehousing parks in India.
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