Vantrock warehousing investment targets established logistics corridors

Summary

Vantrock Real Assets plans to invest ₹3,100 crore in an 11.5-million-square-foot industrial and logistics development pipeline. Initial projects in Pune, Bengaluru and Delhi-NCR are scheduled to begin construction in 2027. The platform will combine new development with warehouse refurbishment, focusing on established locations close to businesses and distribution networks.

First projects planned for 2027

The Vantrock warehousing investment programme will cover approximately 11.5 million square feet, with a projected gross development value of ₹4,200 crore on completion.

Founded by Anshul Singhal, the Mumbai-headquartered platform will initially develop around 3 million square feet in Pune, Bengaluru and the National Capital Region. This first phase has an estimated development value of ₹1,100 crore, with construction expected to start in 2027 and rental income anticipated from 2028.

Land negotiations, documentation and regulatory approvals are at advanced stages. The remaining 8.5 million square feet will include projects in these markets and the Mumbai Metropolitan Region, with phased starts planned over the next 12–18 months.

Development and refurbishment form separate routes

Vantrock intends to secure land through long-term leases, joint ventures and joint development arrangements, limiting reliance on outright purchases. Planned expenditure covers approvals, construction and financing, funded through equity, construction debt and forward funding.

The company also proposes acquiring existing Grade-B warehouses, directly or through joint ventures, and upgrading them to Grade-A standards. Refurbishments could take six to 12 months, while the overall development programme is targeted for completion within four years.

The ₹3,100 crore figure represents planned investment; ₹4,200 crore is the estimated value of the completed assets. Neither should be treated as expenditure already incurred.

Focus shifts towards established locations

The platform’s emphasis is on infill development: using available land and existing buildings within established industrial and logistics corridors.

Its proposed formats extend beyond conventional warehouses to include build-to-suit facilities, multi-storey storage, last-mile logistics, cold-chain space and industrial plots. This approach reflects the different property requirements of manufacturers, logistics operators and businesses serving urban consumers.

Vantrock’s announcement places warehousing, industrial and logistics parks at the start of its investment strategy. Other real asset categories are intended for subsequent phases, rather than forming part of the immediate warehouse construction programme.

Occupier demand provides the market backdrop

Earlier market research shows sustained demand from the sectors the platform intends to serve.

Cushman & Wakefield’s first-half 2026 assessment recorded 36.2 million square feet of gross logistics and industrial leasing across India’s eight leading markets, up 18% year-on-year.

Warehousing accounted for 67% of activity, while industrial leasing approached 12 million square feet, increasing 36%. Third-party logistics and engineering and manufacturing occupiers together contributed more than 60% of total leasing.

Delhi-NCR led activity with a 24% share, followed by Chennai at 17% and Pune at 16%. These figures provide a broader demand context for new development, although they do not establish tenant commitments for Vantrock’s proposed projects.

CBRE’s separate first-half assessment also identified third-party logistics, engineering and manufacturing, and e-commerce as important demand drivers.

Within its market coverage, Delhi-NCR, Chennai and Bengaluru accounted for approximately 60% of leasing. Third-party logistics represented 31% of absorption and engineering and manufacturing 26%.

CBRE also reported that institutional developers backed 33% of new warehousing supply. The findings underline the increasing role of professionally developed logistics property alongside continuing occupier demand.

Institutional investment continues to expand

A separate transaction announced earlier in October illustrates investor interest in established logistics assets.

Brookfield acquired a 100% interest in ESR India’s 10.5-million-square-foot industrial and logistics portfolio, committing ₹4,300 crore towards the acquisition and future development. ESR will continue managing the properties in the near term.

That transaction represents investment in an existing portfolio, while Vantrock’s announcement centres on assembling and developing a new platform. Together, the developments show capital entering the sector through both acquisitions and future construction.

For logistics occupiers, Vantrock’s immediate proposition is additional modern space within established corridors. Delivery will depend on completing land arrangements, obtaining approvals, financing construction and securing tenants. The first operational milestone will be the planned construction starts in 2027, followed by the anticipated commencement of rentals in 2028.

FAQs

How much does Vantrock plan to invest?

Approximately ₹3,100 crore, covering approvals, construction and financing.

Where will the initial projects be located?

In Pune, Bengaluru and Delhi-NCR, with the wider pipeline also including the Mumbai Metropolitan Region.

When will construction begin?

Initial construction is planned for 2027, with rental income expected from 2028.

Will the company only develop new warehouses?

No. It also plans to acquire and refurbish existing Grade-B facilities to Grade-A standards.

How does investment differ from gross development value?

Investment is the planned expenditure on delivering the projects. Gross development value is the estimated value of the completed assets.