In a major move reflecting the rising institutional interest in India’s booming logistics sector, Singapore based private equity firm Xander Group has decided to offload its extensive warehousing portfolio. The portfolio spans 3.5 million square feet and includes high-grade, fully leased logistics assets across three major cities: Chennai, Mumbai (Bhiwandi), and Kolkata. The company aims to fetch over ₹2,000 crore through this strategic sale.
Warehousing Portfolio Positioned in Key Logistics Hubs
Xander Group has spent the last four to five years carefully developing these warehousing facilities in some of India’s most critical logistics corridors. All the assets fall under the Grade A category, which signifies high-quality construction, prime location, and modern infrastructure standards. These facilities are currently fully leased and support long-term tenancy agreements. Moreover, they boast a Weighted Average Lease Expiry (WALE) of more than five years, ensuring consistent rental income for potential investors.
Long-Term Tenancy Enhances Portfolio Value
All the properties within this portfolio are backed by long-term rental contracts with credible tenants, which adds substantial value to the offering. The WALE metric of over five years indicates the average time remaining before lease contracts expire across the portfolio. As a result, prospective buyers can count on reliable cash flows and operational stability immediately after acquisition. Xander’s decision to time this sale strategically coincides with increasing demand from both domestic and international institutional investors for quality logistics assets in India.
Advisors Appointed to Explore Sale Options
To ensure a smooth and efficient transaction, Xander Group has already appointed advisors who are actively exploring various sale options. These advisors have begun engaging with potential strategic buyers and institutional investors who are eyeing opportunities in the warehousing and logistics space. The process involves assessing bids, structuring the transaction, and negotiating deal terms with interested parties. Through this well-planned process, Xander hopes to attract investors with a long-term view of India’s rapidly growing logistics industry.
Sector Growth Supports the Timing of the Exit
Xander’s exit plan comes at a time when India’s warehousing sector is witnessing record-breaking growth. According to recent data, transaction volumes in the top eight Indian cities touched 56.4 million square feet in 2024. This figure marks a 12% year-on-year increase and underlines the growing momentum in the warehousing space. The expansion of e-commerce, manufacturing, and third-party logistics providers continues to drive demand for premium-grade warehousing infrastructure.
High-Profile Tenants Indicate Strong Market Demand
Over the years, Xander has leased significant warehouse space to large e-commerce players such as Amazon and Flipkart. These marquee tenants signal strong market demand and the increasing reliance of leading businesses on sophisticated warehousing solutions. By securing such high-profile clients, Xander has strengthened the appeal and market credibility of its warehousing portfolio. These client relationships further enhance the long-term viability and commercial attractiveness of the assets on sale.
Investment Opportunity for Institutional Players
The sale of this warehousing portfolio offers a rare and attractive opportunity for institutional investors to enter or expand within India’s logistics market. With high-quality infrastructure, stable occupancy, and well-established tenants, the portfolio aligns with the investment strategies of global funds seeking steady returns. The timing is ideal, as both the sector and the broader economy continue to embrace digitalization and consumption-driven growth.
Conclusion
In summary, Xander Group’s move to divest its warehousing assets reflects a timely effort to capitalize on robust investor sentiment. With a prime location footprint, strong tenant mix, and professional sale process in place, the portfolio is expected to attract significant interest. As India’s warehousing industry scales new heights, Xander’s decision highlights how early investments in logistics infrastructure are now translating into high-value opportunities.
