Prologis Announces First Transaction In India

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9th April 2008, 04:16pm - Views: 773









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." 


Business Real Estate ProLogis 2 image

    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. 

    Please do visit http://www.krahejacorp.com for more information. 

 

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

   

   Web site:  http://www.prologis.com 

              http://www.krahejacorp.com

    (PLD) 



Business Real Estate ProLogis 3 image


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