GLP has formed a partnership with IndoSpace, India’s largest industrial real estate company, to tap into growing demand for logistics facilities in India.

Singapore-headquartered GLP will both partner with IndoSpace and co-invest in IndoSpace’s managed investment vehicles.

IndoSpace already has an established platform of more than US$2bn (€1.70bn) in assets under management and plans to raise additional capital to build out a pipeline of around 120m square feet of logistics infrastructure.

GLP’s co-founder and CEO Ming Mei told IPE Real Assets that India could become as big as China over time. GLP manages US$20bn assets in China.

“The two markets share many similarities - a large population, favourable demographics, a rapid developing e-commerce and organized retail channels driving demand for modern logistics infrastructure,” he said.

Through its partnership, GLP also becomes an investor in IndoSpace Core, a joint venture established in 2017 by IndoSpace and Canada Pension Plan Investment Board. The venture is focussed on acquiring and developing logistics facilities in India.

“IndoSpace is an experienced partner which shares similar values and culture as GLP,” Mei said.

“It provides us with immediate scale to capitalise on the early growth stages of India’s rapidly-modernising logistics landscape and to further expand our logistics ecosystem.”

Demand for logistics facilities in India is being driven by economic expansion, growth in organised retail and e-commerce, and the modernisation of India’s supply chain, underpinned by favourable government policies, such as the Goods and Services Tax and the Make-in India initiative.

Sameer Sain, co-founder and CEO of Everstone Group (a private equity group which cofounded IndoSpace), said GLP’s expertise, scale, technology and global relationships would give Indospace “a massive advantage”.

Together, he said, the partners would be able to deliver significant value to customers and investors.