Apeejay Surrendra Group raises ₹300 crore via NCD route

September 30, 2022

The Apeejay Surrendra Group has raised ₹300 crore for its logistics and industrial parks division through the non-convertible debenture (NCD) route. The fund will help fuel the ongoing expansion drive of the group’s real estate division – Apeejay Real Estate (ARE), the company said in a press statement.

ARE has a rapidly expanding and diverse portfolio of interests in logistics and industrial parks, residential, commercial, hospitality, co-working spaces and business centres, service apartments, cultural and educational institutions, and retail across multiple locations in India.

Its logistics and industrial parks are located in cities across India, including Delhi NCR, Kolkata, Dankuni, Haldia, and Kalinganagar. 

The company boasts of continuously developing Grade-A quality warehouse facilities. 

“BPEA Credit, a leading private alternative investment firm in Asia is bullish on the growth story of Indian logistics real estate and has invested in NCD issued by the Apeejay Surrendra Group,” the release said.

Ambit, India’s premier investment bank advised and acted as the exclusive financial advisor to Apeejay Surrendra Group.

On an expansion drive 

The National Logistics Policy released by Prime Minister Narendra Modi on September 17, 2022 aims to improve the movement of goods with optimisation and rationalisation of logistics cost and thereby boost the Indian economy.

“We are ready to be the crucial support system to help Indian products dominate the world market. The government projection to reduce costs in the logistics sector by 10 per cent in the next five years, unified policy, and a regulatory environment for end-to-end logistics services make the logistics and warehouse more and more promising. Backed by the government policy and with funds coming in, we are now on a rapid expansion drive,” Karan Paul, Chairman, Apeejay Surrendra Group said in the statement.

According to Priti Paul, Director, Apeejay Surrendra Group, ARE stands as an obvious beneficiary in the growth of the Indian logistics and warehousing sector. 

“We believe that the Indian warehousing real estate sector is poised for a meteoric rise as a result of government policies, rising demand from e-commerce players, shifting of users toward larger modern storage space, consumers preferring on-demand solutions and demand for fulfilment centres from omni-channel retailers, robotics and technology are all contributing dramatically to the sector’s rapid growth. This is the right time for us to expand,” she said.

ARE’s strategically located futuristic logistics and industrial parks currently have the capacity to reach 90 per cent of India’s 1.3 billion population. The funds would augment the company’s current logistics and industrial parks, as well as build new facilities across the country. 

“We are creating Grade-A warehouses with ESG compliance and setting new standards in specifications as well as building built-to-suit as per clients’ requirements,” she added.

ARE is developing over five million square feet of property in the country’s Tier I, Tier II and Tier III cities.

Apeejay Global Logistics Park Ballabhgarh, Apeejay Industrial & Logistics Park Hyde Road, Apeejay Infralogistics Park Haldia, and Apeejay Logistics Park Kalinganagar are the existing parks in the warehouse real estate market, with more parks on the way, it said. 

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