What are Warehousing InvITs?
Warehousing InvITs are infrastructure investment trusts focused on logistics and warehousing assets such as distribution centres, cold storage facilities, and industrial parks. They provide investors with exposure to India's booming logistics sector driven by e-commerce and supply chain modernisation.
- E-commerce Boom: Growing demand for Grade-A warehousing space
- Long-Term Leases: Stable income from 9-15 year contracts
- Government Push: National Logistics Policy driving infrastructure development
- Strategic Locations: Assets near industrial corridors and consumption hubs
- Scalable Returns: Built-in rent escalation and expansion potential
How Warehousing InvITs Work
These InvITs operate by owning and managing logistics infrastructure:
- Trust acquires or develops Grade-A warehousing parks
- Enters long-term lease agreements with logistics companies and retailers
- Rental income distributed to unitholders as dividends
- Periodic valuation and SEBI-regulated disclosures
- Professional asset management ensures occupancy and quality