Horizon Industrial Parks, a logistics and industrial property platform that has been funded by global alternative assets manager Blackstone, has submitted its draft red herring prospectus (DRHP) to the Indian stock market regulator, the Securities and Exchange Board of India (Sebi), to raise around ₹2,600 crore through an initial public offering.
The IPO would be a primary issue as it would be a part of a bigger fundraising effort of approximately $500 million (or around ₹4,250 crore). It includes a pre-IPO fundraising of about $200 million (approximately ₹1,650 crore), which was done before the DRHP was filed.
The pre-IPO transaction saw the likes of 360 ONE, SBI Life Insurance, State Bank of India, Radhakishan Damani, EAAA, and DSP investments put their funds into the company as they were attracted by the fast-growing industries and logistics real estate sector in India.
Horizon Industrial Parks has created a strong diversified portfolio of about 60 million square feet, of which about 27 million square feet has been completed. The platform has a presence in 46 properties distributed in 10 key cities and provides space to a large set of tenants in the e-commerce business, manufacturing, and 3PL and consumer goods segments.
Its business activities include large-format fulfillment centers, industrial facilities, and in-city logistics parks, located close to demand centers and manufacturing areas. As per the DRHP, Horizon Industrial Parks have recorded a staunch occupancy level of 95% along with more than 100 customers, which speaks volumes about their resilient income streams.
Blackstone initially invested in Horizon Industrial Parks in the year 2020, marking the inaugural investment in the platform, as the demand for organized logistics and industrial infrastructure in India was on the rise back then. Even after the IPO, Blackstone will continue to remain the sole promoter of the company.
This IPO marks an important milestone for the Indian industry and logistics real estate market that has been growing steadily because of the growing demand from the ecommerce industry, Supply Chain Unbundling, an increase in Manufacturing activity, and development of infrastructural facilities such as the PM’s Gati Shakti Master Plan. There is now an emphasis on organised warehousing, last mile logistics, and modern Industrial Parks.
Industry observers highlight that platforms having institutional quality, scale, high occupancy, and a diverse tenancy profile become more and more desirable among public market investors, looking for stable sources of yielding real estate. The planned listing will help Horizon Industrial Parks raise further capital, which will enable it to leverage new opportunities emanating from the Indian logistics and industrial corridors.
Horizon Industrial Parks’ IPO filing now joins other Indian real estate investment platforms which have accessed the public market, further welcoming the maturation and institutionalization of the Indian industrial and logistics sector, as Indian REIT markets mature.
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