CARGOCONNECT-JUNE2026 - Flipbook - Page 75
Logistics Real-Estate FEATURE
remained limited due to governance and compliance
gaps. Structured credit is now actively redirecting
capital 昀氀ows toward organised platforms capable of
meeting global investment and operational standards.
Highlighting this transformation, R K Narayan,
Chief Investment O昀케cer at Horizon Industrial Parks
states, “India’s warehousing sector is undergoing a
structural transition from fragmented Grade B assets to
large-scale institutional-grade, BTS infrastructure, and
structured credit is playing a catalytic role in enabling
this shift.” He adds, “Structured credit from Non-Banking
Financial Companies (NBFCs) and Alternative Investment
Funds (AIFs) is increasingly supporting acquisition and
construction-stage 昀椀nancing, but this capital is typically
available when there is institutional developer backing
that comes with governance discipline.”
This linkage between capital access and governance
quality is reshaping how warehousing ecosystems are
being built and scaled. As Narayan explains, “Grade
B warehousing often lacks governance standards,
compliance frameworks, and long-term visibility,
which structured credit providers typically require,
and as a result, capital is increasingly 昀氀owing toward
institutional-grade, BTS warehousing ecosystems.”
The impact of this shift is already visible in marketlevel expansion trends. As he notes, “Indian real-estate
market posted 29% YoY increase in warehousing
demand to 72.5 million sq ft, while Grade
A warehousing stock in India’s top eight
cities has expanded from under 100
million sq ft in 2019 to 247 million sq
ft in 2025.” This shows how structured
昀椀nancing is supporting both demand
realisation and supply formalisation
simultaneously.
Beyond enabling capital access,
structured credit is also introducing
昀椀nancial discipline and execution rigour
across development cycles—an aspect
that is becoming increasingly important
as warehousing assets transition into
institutional investment portfolios. Gupta
highlights this dimension, stating, “It also brings stronger
昀椀nancial discipline through de昀椀ned covenants, regular
monitoring, and clear exit visibility, which improves
execution and ensures asset quality meets institutional
standards.”
This discipline is particularly relevant in BTS development models, where asset design, tenant alignment,
and delivery timelines must remain tightly coordinated
to ensure long-term occupancy stability. Structured
昀椀nancing frameworks, by linking capital deployment
to project milestones and compliance benchmarks, are
e昀昀ectively reducing execution risk while improving
asset reliability.
From an investment-platform perspective, Sandeep
Jain, Chief Financial O昀케cer, NDR InvIT underscores
how structured credit is enabling asset upgradation
alongside new development. “Structured credit is a
key part of speeding up the move from Grade B to
institutional-grade, BTS warehousing by making it
easier to get money for upgrading assets,” he states,
and further notes, “Developers can now invest in new
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