After exiting logistics firm, Morgan Stanley makes warehousing bet with Lodha Group
Financial services giant Morgan Stanley has bought a stake in an upcoming industrial park near Mumbai from Lodha Group firm Macrotech Developers Ltd, barely two months after exiting an Indian logistics company.
The real estate investment arm of Morgan Stanley has picked up a 75% stake in a 130-acre land parcel owned by Macrotech. Morgan Stanley Real Estate Investing bought the stake in Palava Induslogic 2 Pvt. Ltd, which owns the right to develop an industrial park on the land parcel at Palava near Mumbai.
Morgan Stanley is investing in Palava Induslogic through optionally convertible debentures. The deal value is likely to be around Rs 200-250 crore, including debt, according to estimates.
Palava is an integrated smart city being developed by Lodha Group. The 130-acre land parcel has an enterprise value of Rs 335 crore, as per a regulatory disclosure.
Palava Induslogic was incorporated in February this year to buy, sell, rent and operate its own or leased property across residential, commercial, and industrial real estate segments.
In all, Abhishek Lodha-led Macrotech monetized 165 acres of land in the year through March 2021. Besides the deal with Morgan Stanley, the company fetched Rs 64 crore by monetizing land other than the industrial park. Other buyers include French third-party logistics company FM Logistics and a US-based pharmaceutical company.
An email query sent to Morgan Stanley Real Estate didn’t elicit a response till the time of publishing this article.
US-headquartered Morgan Stanley operates several alternative investment vehicles that invest in Indian companies across asset classes. Apart from real estate, the firm makes private equity investments in companies from sectors such as pharmaceuticals and financial services. It also separately makes infrastructure investments.
Last month, it exited Indian logistics company KSH Infra Pvt. Ltd with benchmark returns, just two years after making the investment.
Its PE arm clocked an exit two months ago when it sold its stake in Mumbai drugmaker ZCL Chemicals to buyout firm Advent International. Morgan Stanley PE scored benchmark returns from the exit.
Morgan Stanley also plans to sell its stake in Jana Small Finance Bank through the lender’s initial public offering.