Brian Oravec, CEO and Partner, Realterm Everstone
IndoSpace is a pioneer in the modern industrial and logistics-related real estate sector in India with a total target built-up area of 15 million sq. ft. IndoSpace parks are developed by Realterm Everstone, a joint venture between Realterm Global and Everstone Capital Advisors. Brian Oravec, who has over 11 years of experience in finance and real estate, shares his outlook on the logistics parks sector with Jibran Buchh.
Can you give us your view on logistics parks in India?
When IndoSpace refers to a logistics park it means a large area, typically over 100 acres of land, master planned with modern infrastructure that enables efficient logistics operations. The logistics park developer is responsible for creating a complete ecosystem that allows tenants to operate efficiently and at a worldclass level. The differences between modern distribution space and typical warehouses in India are obvious and range from the quality of construction, especially the floors and roofs, to the circulation area around the buildings to the quality of the property management and maintenance.
What are some of the major challenges facing the logistics sector?
India has an extremely limited supply of high quality industrial and logistics-related real estate. The two largest challenges facing the industrial real estate industry are (i) the lack of experienced industrial real estate development professionals and (ii) the difficulties associated with acquiring large tracts of land in India.
The general lack of quality road and rail infrastructure limits demand for industrial real estate in India because potential customers decide to locate facilities outside of India. For example, a company may establish a manufacturing plant to service the domestic Indian market, but if the infrastructure to allow the efficient import and export of products was improved, they would establish a much larger manufacturing plant to service other regions.
What is the current status of logistics parks planned by your company?
Currently, IndoSpace is developing 15 million sq. ft of warehousing and manufacturing space in the prime industrial markets in India. IndoSpace has operational parks in Pune, Chennai, and Delhi and is developing projects in Mumbai and Bengaluru. Indo- Space will be announcing several new markets later this year.
What are the facilities that IndoSpace will offer?
IndoSpace is a focused industrial and logistics related real estate developer with global design and development experience, which makes it the preferred choice for large multinational and Indian companies that require modern space. Some benefits and value-added features of IndoSpace parks are:
- Large format facilities with sufficient scale and clear heights to allow high cube racking. Tenants utilise the increased storage space to consolidate their smaller inefficient warehouses into large modern distribution centres
- IndoSpace facilities are created in integrated industrial parks, which unlike standalone buildings, provide a secure and organised environment to allow customers to operate efficiently
- The IndoSpace parks offer 24- hour security and on site professional property management services
- The parks are master planned to provide for efficient vehicle circulation
- The park designs are cost effective and energy efficient (example: use of skylights)
- IndoSpace facilities have high quality, global standard flat floors to meet customer requirements and allow safe and efficient high cube racking and materials handling equipment operations
- IndoSpace parks have high quality standing seam roofs to prevent product damage from leaks
- IndoSpace parks offer industrial grade utilities such as power and water
- IndoSpace designs incorporate leading life safety features, for example Early Suppression Fast Response (ESFR) fire suppression systems
- The warehouses are designed to increase efficiency (example: increased number of dock doors, use of dock levellers, and enhanced clear heights).
Can you talk about Indo- Space Logistics Parks?
IndoSpace is the pioneer in the modern industrial and logisticsrelated real estate sector in India. It is the largest developer of industrial and logistics real estate in the country. Currently, IndoSpace has 11 projects under development across five cities in India, with a total target built-up area of 15 million sq. ft and covering a total land area of over 700 acres The IndoSpace parks are managed by Realterm Everstone Development Management, a joint venture between Realterm Global and Everstone. Realterm Global is an industrial real estate firm that manages approximately $2.5 billion across over 300 operating and development properties (around 33 million sq. ft) in North America, Europe and India. The Everstone Group is a premier India and Southeast Asia focused investor with over $1 billion invested in India.
IndoSpace has an experienced design and planning team, which manages all types of build to suit projects and works with clients to design the most cost effective and efficient facility for their operational needs.
What are the characteristics of your logistics parks?
Some of the characteristics of IndoSpace’s modern logistics parks include:
- Large scale, master planned development that provides a secure environment within which multiple companies operate from both multi-user and dedicated facilities which are all serviced by world class infrastructure.
- Wide and well maintained roads within the park allow for the efficient movement of large vehicles. All IndoSpace parks are designed to handle 40 foot containers and larger trucks, which we expect will be introduced in India in the coming years as the nation’s logistics infrastructure expands.
- Industrial grade power infrastructure to minimise operational costs
- Ample parking for vehicles to decongest the roads and highways in and around the park.
- Proper drainage to prevent flooding which can both hamper operations and damage products
- External lighting to minimise accidents and allow for efficient 24-hour operations
- Customised built-to-suit options to help customers achieve their specific business goals
- The ability for customers to expand within the park as their businesses grow
- IndoSpace facilities have high quality, global standard flat floors to meet customer requirements and allow safe and efficient high cube racking and materials handling equipment operations
- IndoSpace facilities have high quality standing seam roofs to prevent product damage from leaks
