- 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 -
Denver, (ANTARA News/PRNewswire-AsiaNet) - 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 http://www.prologis.com.
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)
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