CARGOCONNECT-JUNE2026 - Flipbook - Page 77
Logistics Real-Estate FEATURE
This need for long-duration capital aligns closely
with the structural design of AIFs, which are increasingly pooling domestic investments into regulated
vehicles capable of supporting complex infrastructure
projects. As Gupta notes, “AIFs are enabling this shift by
pooling domestic capital from HNIs, family o昀케ces, and
institutions into structured vehicles,” while highlighting
that over `74,000 crore has already been invested into
real-estate through AIFs by FY2025, and warehousing
has emerged as a key focus over the past couple of years.
The scale of this capital mobilisation is also translating into tangible asset creation. Gupta further points out,
“We have ourselves raised and invested approximately
`2,500 crore across various platforms over the past
昀椀ve years, with nearly 16 million sq ft constructed or
under development.” This makes it evident that AIFled investments are directly contributing to capacity
expansion within logistics real-estate.
Beyond capital availability, the structural flexibility o昀昀ered by AIFs is proving critical for projects
characterised by phased development cycles and evolving
demand conditions. “AIFs are emerging as an important
source of flexible, medium to long-term capital for
multi-modal logistics parks and integrated industrial
ecosystems,” Narayan explains, and went on to add,
“Unlike traditional lending, AIFs provide 昀氀exibility in
capital deployment, including structured amortisations,
which is particularly important for phased development
in long-gestation infrastructure projects.”
This 昀氀exibility becomes particularly relevant in the
context of integrated logistics parks, where land acquisition,
infrastructure development, and operational stabilisation
occur over extended timelines. As Narayan elaborates,
“These projects often require upfront payments or large
deposits, infrastructure investment, and phased operations, making 昀氀exible capital structures essential,” while
also noting, “AIFs are increasingly supporting funding
across the project lifecycle—from land acquisition and
development to stabilised asset platforms.”
Importantly, AIF-led capital is not only enabling
individual projects but also supporting the development of platform-based logistics ecosystems. Narayan
highlights that this capital is enabling platform-led
development of multi-modal logistics parks, particularly
along industrial corridors, freight corridors, and emerging manufacturing clusters, thereby accelerating the
transition from standalone warehousing to integrated
logistics ecosystems.
From an operational standpoint, this platform
approach is signi昀椀cantly enhancing execution e昀케ciency
and scalability. Jain explains, “AIFs are becoming
important for developing multi-modal logistics parks
because they can invest for longer periods of time and
use patient capital,” adding that they provide critical
funding for both land acquisition and infrastructure
development, which are capital-intensive in nature.
He further underscores the strategic impact of this
investment model, stating, “Beyond 昀椀nancing, AIFs
help create integrated platforms for larger portfolios,
and this platform approach enhances operational
e昀케ciency, accelerates project execution, and supports the
development of large-scale, future-ready logistics hubs.”
AIFs are emerging as an important source of flexible,
medium to long-term capital for multi-modal logistics
parks and integrated industrial ecosystems. Unlike
traditional lending, AIFs provide flexibility in capital
deployment, including structured amortisations which
is particularly important for phased wise development
in a long-gestation infrastructure.
R K NARAYAN
Chief Investment Officer, Horizon Industrial Parks
Another critical dimension of AIF participation is
the governance and transparency it brings to logistics
real estate development. As Gupta explains, “This
capital comes with better governance, visibility, and
昀氀exibility, allowing developers to plan and execute large,
integrated parks with more certainty.” He further notes,
“Investors get to participate in a high-growth sector in
a structured and regulated fashion.”
This dual bene昀椀t of enabling developers to scale
with con昀椀dence while o昀昀ering investors structured
exposure to logistics infrastructure is strengthening
the overall investment ecosystem around integrated
logistics parks. “The interest has only grown over the
past few years, and the sector will clearly bene昀椀t from
increasing AIF investments over the near-term,” Gupta
puts across.
Global Institutional Capital
Driving ESG Discipline in Indian
Warehousing
Apparently, India’s warehousing sector is witnessing a
deeper layer of formalisation, driven not only by rising
demand for Grade A infrastructure but also by the
increasing in昀氀uence of global institutional capital. Over
the past few years, international investors, including
sovereign funds, pension funds, and global asset managers have expanded their exposure to India’s logistics
real-estate, bringing with them a strong emphasis on
governance, transparency, and Environmental, Social,
and Governance (ESG) compliance. As a result, ESG
considerations are no longer peripheral but are becoming central to how warehousing assets are designed,
developed, and operated.
This transition is unfolding alongside sustained
growth in occupier demand for compliant infrastructure.
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