Lodha & Morgan Stanley to jointly invest ₹600 crore in warehousing business

Lodha and Morgan Stanley real estate investing company to develop a 1.9 million square feet warehouse at Palava Industrial and Logistic Park (PILP) near Mumbai.

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Mumbai based real estate company Lodha Group will now be working hand in hand with an affiliate of Morgan Stanley real estate investing company to develop 1.9 million square feet at Palava Industrial and Logistic Park (PILP) near Mumbai. The deal aims to construct a 72-acre warehouse at PILP, which is presumed to entail an investment of Rs 600 crore.

Morgan Stanley Real Estate Investing (MSREI) is the global private real estate investment management arm of Morgan Stanley. The Macrotech developers bid fair to be the project developer manager and will be accountable for leasing, project development, asset management and mission supervision.

“Our marquee acquisitions and key partnerships for PILP have helped us establish a solid track record in the logistics sector. Through this formidable collaboration, we will leverage our development expertise along with MSREI’s industrial know-how as we continue to expand and enhance this best-in-class industrial park. These are exciting yet crucial times for us as we expect more such strategic partnerships in the near future,” said Shaishav Dharia, CEO, Townships, and Rental Assets, Lodha Group.
Lodha Group is India’s number one real estate developer. Palava is one of the largest projects of Lodha and it claims it to be India’s number one smart city and PILP is the art of this 4500-acre smart city.

Vineet Sekhsaria, executive director and head, Morgan Stanley Real Estate Investing India, said, “We believe that Palava will soon become the most strategic location for logistics and industrial development in western India. Given excellent infrastructure with multiple connectivity routes to the city and upcoming trans harbour sea-link, Palava will have benefits, unlike any other location.”
In early 2018, Kotak Realty Fund, which had invested around Rs 540 crore in Palava from its $400 million offshore funds exited with around Rs 838 crore, at an IRR of 18%. As of 2019, Piramal Enterprises Ltd (PEL) and Ivanhoé Cambridge, a real estate subsidiary of CDPQ (Caisse de Dépôt et Placement du Québec) have made an equity investment of Rs 500 crore in the project.