ProLogis Announces First Transaction in India
DENVER, April 9 /PRNewswire-AsiaNet/ --
- Enters into Joint Venture Partnership with K Raheja Corp, a Leading Indian
Real Estate Developer -
- Announces Appointment of Abhijit Malkani to Head of Indian Operations -
ProLogis (NYSE: PLD), the world's largest owner, manager and developer of distribution
facilities, announced today that it has entered the market in India through a 50/50 development joint
venture agreement with K Raheja Corp, one of the largest real estate developers in India.
"We are very pleased to announce our new joint venture agreement with K Raheja Corp," said
Jeff Schwartz, chairman and chief executive officer of ProLogis. "Over the last few years, ProLogis
has achieved tremendous success in Asia following the establishment of operations in Japan,
China and South Korea. Launching development in India, one of Asia's most vibrant growth
markets, is a logical next step and one that we believe will create real value for our shareholders
and provide reliable access to new warehouse space for our global customers."
Under the terms of the agreement, the joint venture will acquire land, develop properties and
manage the assets and will initially focus on securing development opportunities in the cities of
Mumbai, Chennai, Delhi, Bengaluru, Kolkata, and Pune -- which are among the fastest growing
locations for distribution operations in India. The JV already has acquired 27 acres of land in Loni
near Pune and is in advanced stages of land acquisition in other key markets, including 140 acres
in Bengaluru; 120 acres in Chennai; 99 acres in Kolkata; 70 acres in Mumbai; and an additional 33
acres in Pune. Overall, the JV expects to develop approximately 7.5 million square feet over the
next three years and about 25 million square feet over the next five years. The JV plans to invest
approximately $575 million (2,300 crores rupees) over the next three years.
"We have seen demand for modern warehouse space in India rise steadily over the past several
years, owing to strong growth in manufacturing, widespread infrastructure improvements and
greater interest among companies to outsource logistics requirements. By partnering with K Raheja
Corp, we expect to build our business more quickly, benefiting from enhanced access to
developable land as well as an expanded customer base. We look forward to working with K
Raheja Corp, and to establishing this new venture as the leading provider of high-quality distribution
facilities in India," said Schwartz.
K Raheja Corp is a private, family-owned company founded in 1956. The company has over
6000 employees and develops a variety of real estate products, including office, retail, hotel and
residential. It is one of the largest real estate developers in India, building more than six million
square feet annually, with a total of over 2,200 projects developed and completed. Clients include
multi-national corporations such as IBM, Morgan Stanley, HSBC, Nokia, Accenture, Oracle, and
Citigroup.
"The majority of the existing distribution space in India is functionally obsolete, and we believe
this new partnership will be successful in meeting the growing demand for high quality logistics
facilities here," said Chairman of the K Raheja Corp Group, Mr. C.L. Raheja. "We're extremely
pleased to be working closely with ProLogis, whose financial strength and industry-leading
development expertise will be enormously beneficial as we move forward."
Also today, ProLogis announced the appointment of Abhijit Malkani to head of operations for
ProLogis in India. Mr. Malkani is the former regional director of Indian and Middle East operations
for NAI Global, a premier network of independent commercial real estate firms and one of the
largest commercial real estate service providers worldwide.
"I am very pleased to be joining ProLogis to support the company's business operations in India,"
said Malkani. "The rapid growth of the country's middle class has led to a surge in residential and
retail development and consequently, increased demand for modern, efficient facilities for domestic
distribution. By working closely with K Raheja Corp, a leading developer with a deep understanding
of the Indian property markets, and leveraging ProLogis industrial development expertise, we will be
able to capitalize on this emerging need for high quality space."
Mr. Malkani brings more than ten years of experience in domestic and international real estate to
the position. While at NAI, he helped establish the NAI operations in India and led the acquisition
and investment process for several multinational companies entering the Indian market.
About ProLogis
ProLogis is the world's largest owner, manager and developer of distribution facilities, with
operations in 118 markets across North America, Europe and Asia. The company has $36.3 billion
of assets owned, managed and under development, comprising 510.2 million square feet (47.4
million square meters) in 2,773 properties as of December 31, 2007. ProLogis' customers
include manufacturers, retailers, transportation companies, third-party logistics providers and other
enterprises with large-scale distribution needs. Headquartered in Denver, Colorado, ProLogis
employs more than 1,500 people worldwide. For additional information about the company, go to
About K Raheja Corp
K Raheja Corp, the foremost and most preferred real estate developer in India has been
constantly changing the face of land development since 1956. Fuelled with a vision to be one of
India's leading organizations, they are driven by a passion to create -- not just structures but a
whole new way of living. Over the decades, the company has achieved various milestones under
the leadership of Mr. C.L. Raheja, ably assisted by his sons Ravi and Neel. The Group has grown
from being one of India's leading real estate developers in to a well-diversified corporate house that
has established leadership in the retail and hospitality segments, aside from its core business of
realty.
SOURCE ProLogis
CONTACT: Media, Krista Shepard of ProLogis,
+1-303-567-5907,
kshepard@prologis.com;
or Suzanne Dawson of Linden Alschuler & Kaplan, Inc.,
+1-212-329-1420,
sdawson@lakpr.com,
for ProLogis; or Investors,
Melissa Marsden of ProLogis,
+1-303-567-5622,
mmarsden@prologis.com
(PLD)
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