Avendus Capital Advises KSH Group on the Sale of Its ~0.7 mn Square Feet Warehousing Assets to Mapletree Investments

KSH Infra, a leading developer of industrial and warehousing infrastructure has concluded a transaction to sell its investment in subsidiary company, KSH Infra Industrial Park Private Limited to Coral Logistics Assets 2 Pte. Ltd., a subsidiary of Mapletree Investments (“Mapletree”). The transaction marks the successful consummation of a forward sale agreement between Mapletree (and its affiliates) and the KSH Group. The park is spread over ~0.7 million square feet and is leased to blue-chip multinationals. This marks the second successful exit of KSH Infra’s subsidiary company assets to Singapore based Mapletree and its affiliates.

The transaction was structured into two parts, whereby Mapletree invested to part-fund the equity requirement to develop the project in June 2020. Additionally, it provided a commitment to acquire the project at a preagreed cap rate, once fully developed and leased. The two-stage process was completed with the consummation of the current tranche.

Avendus Capital was the exclusive financial advisor to KSH Group on the transaction.

Deal Value

USD 40 mn

Service

Mergers & Acquisitions

Sector

Infrastructure & Real Assets

Date

December 2022

We are pleased to have completed this transaction as earlier envisaged in the forward sale arrangement. This is our second asset sale to Mapletree and its associates over the past two years.

We recently commenced development on our first project under the JV with Indospace measuring 1.5 million square feet in Chakan and are about to launch our second park shortly. The focus of our partnership is on developing sustainable, resource-efficient, zero-carbon buildings for customers to benefit from the energy and water savings. The projects will also use environment-friendly, energy-efficient building materials, meeting global Green Building Standards.

Rohit Hegde

Managing Director, KSH Group

This transaction strengthens global investor interest in India’s industrial logistics space and marks a successful outcome for both KSH Group and Mapletree. KSH Group was able to access development capital and Mapletree was able to tie up the acquisition at the preliminary stage. This transaction underscores Avendus’ market leadership in the warehousing and logistics sector.

Prateek Jhawar

Executive Director and Head, Infrastructure and Real Assets, Avendus Capital

About KSH

KSH Infra recently signed a joint venture (JV) with Indospace to invest INR 1,000 crores (USD 135 million) to develop a 10 million square feet portfolio of world-class industrial and warehousing Infrastructure across the country over next five years.