The Embassy Group to Invest INR 350 crore in Pune Project

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A joint venture between private equity firm Warburg Pincus and realty developer Embassy Group, Embassy Industrial Parks, will invest INR 350 crore to manufacture a 1.1-million sqft industrial park at Chakan, Pune.

Built-to-suit factories will be comprised in this project ranging from 50,000 sqft to 2 lakh sqft in size, said Embassy Industrial Parks’ CEO Anshul Singhal. “The total project cost would come to around INR 350 crore, which includes the cost of 52-acre land parcel which we bought last year,” said Singhal. “Construction has already started and we plan to deliver the project in two years.”

The firm claims to have snapped up lease commitments for about 450,000 sqft of project. “We are looking at multinational companies in the space of light manufacturing and processing for the industrial park,” he added.

Embassy Group and Warburg Pincus had formed a JV in October 2015 and the unit is planning to building seven-eight industrial parks over the next six years with an investment about INR 1,600 crore as equity.

The company is exploring opportunities in Bengaluru, Mumbai, Delhi, Pune, Ahmedabad and Kolkata. “We are at a land acquisition stage at present and hope to start construction in three-four more industrial parks in the next 12 months,” Singhal said.

In March, the company had signed an MoU with the Government of Haryana to building three industrial parks around Gurgaon with an investment of INR 1,910 crore.

Embassy Group also has another JV with Brookfield Asset Management in which the two will infuse INR 220 crore of equity for building warehouses on 170 acres in Chennai.