Chennai, April 18 (Inditop.com) Integrated property development and asset management company Vision India Real Estate Pvt Ltd is planning to develop logistics parks in Bangalore and Chennai, with an outlay of $110 million.
“Our focus areas are Bangalore, Chennai and Hyderabad. To start with, we will be building a logistics park in Bangalore (52 acres, outlay $60 million) and in Chennai (40 acres, outlay $50 million). Our target clientele would be retailers, international third party logistics providers, and industrial and automobile units,” Ariel Lahmi, director told Inditop Sunday.
He said the company is awaiting regulatory clearances and would start construction work after getting the green signal.
“Sixty percent of the warehouse space in both the parks have already been booked,” Lahmi said.
The Bangalore logistics park will come up on the Old Madras Road whereas the Chennai park will come up near Sriperumbudur.
Vision India plans to follow dual model for its warehouses – leasing as well as outright sales.
Lahmi is also looking at selling the warehouses to foreign insurers having a presence in India.
“Overseas insurers would have 10 percent of their real estate investment in warehouses as it offers steady returns. The internal rate of return from warehouses are similar to that of what insurers would get from letting out commercial space,” he said.
According to him, insurers would be attracted to invest in warehouses developed by Vision India as they will be modern, huge in size and would have a life of over 40 years.
“Insurers will be interacting with one major client and will get their lease rentals without any problem. It is like income from bonds,” he claimed.
He said the demand for good warehouse space in southern India is around five million square feet and even if Vision India develops 10 percent of that it is good business.
Vision India has teamed up with the city-based Gem Group having business interests in granites, sugar mills, textiles and hospitality to build a residential apartments project near here at an outlay of Rs.320 crore.
