For warehousing and logistic infrastructure growth in India, realty firm K Raheja Corp has signed up a 50:50 joint venture contract with Denver-based ProLogis, a large-scale owner, manager and developer of distribution facilities.

The joint venture will purchase land, build up properties and manage assets.

At first, the JV will focus on Mumbai, Chennai, Delhi, Bangalore, Kolkata, and Pune with an investment of Rs 23 billion.

To start with, the promoters have bought 27 acres at Loni, near Pune.

The JV plans to build up 7.5 million sq ft in 3 years and a total of 25 million sq ft by the end of five years.

The Group has a strong presence in retail and hospitality, apart from its core business of realty. The company owns retail brands such as Shoppers Stop, Inorbit Mall, HyperCity and Cross Word chain.

ProLogis had seen demand for modern warehouse space in India rise steadily over several years, owing to strong growth in manufacturing, widespread infrastructure improvement and greater interest among companies to outsource logistics requirement.

ProLogis is said to have USD 36.3 billion in assets under management with 510.2 million sq ft of industrial space in 118 markets across North America, Asia and Europe.