Indian real estate-focussed asset manager Landmark Capital Advisors Pvt. Ltd has floated a Rs 500 crore ($67 million) alternative investment fund to invest in industrial properties such as warehousing and logistics parks.
The Landmark Warehousing and Logistics Fund’s target corpus includes Rs 200 crore in a greenshoe option, the firm said in a statement.
Landmark Capital was founded by Ashish Joshi, who was previously managing partner at real estate-focussed investment firm Milestone Capital. To be sure, Landmark Capital isn’t part of Gaurav Dalmia-led Landmark Holdings, which also invests in the real estate sector.
The Landmark warehousing fund is looking to invest in six-seven assets with an average ticket size of Rs 70-80 crore. It has a deal pipeline that covers more than 400 acres of land. It aims to diversify its portfolio across regions,
Landmark Capital is looking to acquire land across India and seek margin funding (mostly bank debt) to create industrial infrastructure, a person directly aware of the matter told The Capital Quest.
The firm has held discussions with high-net-worth individuals (HNIs) and corporate entities as it looks to build a base of limited partners (LP), the person said. The potential LPs include a large industrialist family from northern India, a serial entrepreneur and investor, and a family office representing a large industrial group, the person said without disclosing the names owing to confidentiality agreements.
Landmark Capital declined to comment on the fund features and potential LPs.
However, founder and CEO Joshi said India’s growing economy, changes in consumer behaviour, and digitally savvy millennial consumers have made the warehousing sector an attractive investment opportunity.
“The other key factors driving this growth include favourable government policies, growing middle class, improved telecom and internet penetration, and increased e-commerce adoption,” he said.
The coronavirus pandemic has proved to be a boon for the warehousing and logistics segments thanks to rapid growth in the e-commerce industry, and Landmark Capital is seeking to tap this opportunity.
Landmark Capital identifies, invests, and develops niche asset classes such as warehousing, cold storage, and logistics in other real estate asset classes. It has managed over 50 investments in high-quality real estate asset classes including commercial, warehousing, retail, residential, and plotting across 12 major cities in India.