The Indian warehousing market is witnessing significant activity as Alta Capital, along with other global investors, are vying for Xander Group's portfolio of warehouse assets located in key logistics hubs across India. Xander Group, a Singapore-based private equity firm, has initiated a process to divest its 3.5 million sq ft warehousing portfolio spread across Chennai, Mumbai, and Kolkata, seeking a valuation exceeding ₹2,000 crore. The portfolio, built over the last four to five years, comprises fully leased Grade A properties with long-term leases, making it an attractive proposition for potential investors.
Alta Capital's logistics platform, LogiCap, is reportedly among the frontrunners in the race to acquire Xander Group's warehousing assets. However, it faces competition from other major players in the real estate investment space, including Horizon Industrial Parks, CapitaLand Ltd, Ascendas Firstspace, and Morgan Stanley Real Estate Investing (MSREI). IndoSpace is also expected to join the bidding process. The high level of interest from both domestic and global investors underscores the growing appeal of India's warehousing sector.
Xander Group has appointed real estate investment advisor JLL as the banker for the deal, indicating a structured and competitive bidding process. The assets being offered are strategically located in high-demand corridors around Chennai, Mumbai, and Kolkata, and are fully operational and leased to quality tenants. With over 95% of the properties having a Weighted Average Lease Expiry (WALE) of over five years, the portfolio offers stable rental income and long-term growth potential.
The Indian warehousing market has been experiencing robust growth, driven by factors such as the country's 'Make in India' policy, increasing manufacturing activity, the expansion of the e-commerce sector, and the rise of third-party logistics (3PL) providers. This growth is reflected in the increasing demand for Grade A warehousing space, particularly in key cities like Delhi NCR and Chennai, which led the charge with over 3 million sq ft leased, contributing approximately 35% to the total demand, followed by Chennai with a 22% share in the first quarter of 2025. Engineering and e-commerce sectors surpassed 3PL in demand, driving large-sized deals.
The trend towards a more mature industrial and logistics (I&L) market is further supported by the surge in demand for premium, modern warehouses and the influx of investment-grade assets from institutional investor-backed developers. Leasing activity in the industrial and warehousing market has seen a 15% year-on-year growth across top cities in Q1 2025, reaching 9 million sq ft. This strong leasing activity is mirrored by new supply, indicating improved developer confidence in the market.
The warehousing market in India is projected to reach a revenue of US$ 104.7 billion by 2030, with a compound annual growth rate of 10.3% expected from 2025 to 2030. This positive outlook makes the potential acquisition of Xander Group's warehousing portfolio a valuable opportunity for investors looking to expand their presence in the Indian logistics sector.
Alta Capital's interest in Xander's warehousing assets aligns with its strategy of building a pan-India warehousing and logistics platform. The company has already committed $200 million of equity capital for the acquisition and development of Grade A assets in the sector. In November 2024, Alta Capital acquired warehouse assets of 2.5 million sq. ft from Indospace for Rs 8.4 billion, further demonstrating its commitment to the Indian warehousing market. This deal comprised Grade A warehouses in Pune and Chennai and expanded Alta Capital's portfolio to over 11 million sq. feet in India.
The competition for Xander Group's warehouse assets reflects the increasing institutional interest in India's logistics real estate. With its strategic locations, long-term leases, and Grade A properties, the portfolio is expected to attract a high valuation and contribute to the continued growth and development of the Indian warehousing sector.
