Future Market Networks (FMNL), the real estate arm of Future Group, has entered into an equal joint venture with IL&FS and will spend over Rs 1,200 crore on setting up eight infra-logistics parks with up to 2 million sq ft of space in each over the next three years. The parks will be located in Mumbai, Pune, the national capital region, Chennai, Bangalore, Kolkata, Vapi and Baddi. The parks will be spread over 50-100 acres and be located within a 20-30-km radius of these cities.
As part of this plan, Future Market Networks, earlier known as Agre Developers, is acquiring 100 acres in Khopoli near Mumbai in addition to the 113 acres in Kolkata and 50 acres each at Ghaziabad and Jhajjar in Haryana that it has already acquired.
Future Supply Chain, Future Group’s logistics company, will be the anchor tenant at all of these parks while third-party companies involved in fast moving consumer goods and logistics businesses will be approached for the remaining space.
Kishore Biyani, promoter of Future Group, who holds 68% in Future Market Networks, said that the investment of will be funded through a mix of equity and mezzanine finance. The group is currently finalizing 18 divestment and fund-raising transactions aimed at lowering its debt. Biyani clarified that the construction debt to be raised by FMNL will not be added to the parent company’s burden as its own net debt-equity ratio currently stands at 0.3, he said.
In a related development, FMNL, Future Trade Markets Pvt. Ltd. (Subsidiary of FMNL) and SKC3 Limited (an investment vehicle company of Fung Properties), have entered into a strategic partnership through a joint venture agreement to engage in the business of development of whole sale markets in India. It is proposed that Future Trade Markets Pvt. Ltd. will create internationally benchmarked whole sale markets at strategic locations across the country.