One Industrial Spaces disrupts the warehousing sector

Targets domestic and foreign investors looking to invest in the Industrial & Warehousing Real Estate Sector in India

Mumbai, August 27, 2019

Anshul Singhal, Ex-CEO & Director Embassy Industrial Parks and JSW Severfield Structures Limited, has launched his maiden entrepreneurial venture “One Industrial Spaces”, an integrated organization for fund, asset and end – to - end development management for the warehousing sector in India. Anshul is a veteran in the Industrial & warehousing space and has a track record of delivering Grade A industrial and warehousing facilities across India.

Commenting on his new venture, Anshul Singhal, Founder & CEO, One Industrial Spaces said, “One Industrial spaces can deliver end - to - end Development Management to our customers; this includes procurement of approvals and asset management.

On the one hand, we have access to high quality tenants who are looking for large format warehousing spaces on long term lease on clean, complaint land. At the other, we are partnering with landowners to unlock lands faster. Since land is an emotional subject in India, most landowners don’t wish to sell their land, seeing it as a source of wealth creation for their future generations. Given a choice, they would like to partner or have a joint venture with a professional organization to develop a quality asset.”

Singhal added, “We will be the first warehousing company in India with focused partnership models for landowners that help them make stable returns on their existing lands. We will also provide investor and financing tie-ups to capitalize each project with a combination of equity and debt.”

“Additionally, we have tied up with two Asset Reconstruction Companies’(ARC’s) and are now in active talks with various banks and their stressed assets departments to buy out and develop stressed industrial assets which will give our customers facilities that will lease faster and offer a strategic locational advantage. In doing so, we will also help reduce the NPAs and boost economic and social growth in those regions. Our team’s expertise and focus in the Warehousing development will add significant value to asset owners, investors and customers, unlocking value for every party”

T S Bhattacharya, Director, One Industrial Spaces (and former Managing Director, State Bank of India) added “the Warehousing Infrastructure sector, given relatively short construction cycles, robust demand and a leased based model (typically to AAA credit tenants on a long term basis), provides banks with an attractive, de-risked lending proposition for construction finance and lease rental discounting”.

Yash Ravel, ED - Capital Services, One Industrial Spaces (former Vice President, Morgan Stanley Real Estate and Principal, Proprium Capital Partners) further commented “We are the first organized company that will create an Investment platform for on-shore Indian and HNI investors to invest capital into the profitable warehousing asset class in India in an organized and transparent manner. Even in this challenging economic situation for real estate, warehousing continues to be the only sector within Indian real estate to deliver both- attractive development returns and stable long-term rental yields to investors. While we have already tied up capital for our initial deal pipeline, we are also in advanced discussions with foreign institutional investors to raise additional capital for future growth.”

While complimenting Anshul Singhal on his new venture One Industrial Spaces, Anuj Puri, Chairman, ANAROCK Property Consultants Pvt. Ltd. said, “The first two quarters of the year witnessed close to 14 million sft of leasing across key cities, which is an impressive 30% increase year-on-year. Warehousing demand is relatively insulated from the overall slow-growth environment we are seeing given that there is strong upgradation demand (i.e. occupiers moving from Grade B, non-compliant facilities to Grade A facilities) in addition to primary demand. Compared to other asset classes within Real Estate, this sector is perfectly positioned to offer good returns. Land buying is a critical challenge in the sector. One Industrial’s unique proposition is looking at the challenge very differently and could prove to be a potential disruptor in the Industrial and Warehousing space.”

About One Industrial Spaces

Born from the need to address one of the fundamental challenges in the Industrial and Warehousing asset class - the lack of capital deployment expertise - ‘One Industrial Spaces’ will source and develop feasible land parcels which suit institutional investors, get leased by valued occupiers, whilst maintaining high levels of compliance and zero tolerance to regulatory lapses across the project lifecycle.

The fund, asset and development management arms of the organization, leveraging the team’s expertise, will cover every critical component in the delivery of large format, institutional grade warehousing and industrial parks- from site selection, sourcing & due diligence, to financing, construction, leasing & exit.

One Industrial Spaces will focus on select Tier 1 & 2 micro markets across India, by connecting landowners, investors, consultants and customers using the combination of technology and processes in an integrated manner. The key strength of the organization is its access to high quality tenants and meeting their demands by delivering high quality warehousing on viable parcels of land across India.