KSH INFRA Industrial, Logistics & Warehousing Fund I

What Is KSH INFRA Industrial, Logistics & Warehousing Fund I?

KSH INFRA Industrial, Logistics & Warehousing Fund I is a Category II AIF that develops Grade-A industrial and logistics parks in Pune, Chennai, Bengaluru and Mumbai using a Buy-Build-Lease-Operate-Exit model. Managed by KSH INFRA Investment Managers and registered with SEBI under IN/AIF2/26-27/2209, it is targeting ₹1,250 crore (a ₹750 crore base plus a ₹500 crore greenshoe) over a 5.5-year term, with a minimum commitment of ₹1 crore and first close expected in Q4 2026.

The fund plans 6–8 investments in established industrial clusters, taking each project from land purchase through construction, leasing and stabilisation to sale. It targets a fund-level IRR of 17–19% after fees and carry; this is the manager's underwriting estimate, not a guaranteed return.

KSH INFRA Fund I Snapshot

KSH INFRA Fund I Investment Strategy: Buy-Build-Lease-Operate-Exit

KSH INFRA Fund I runs each project through four stages – buying land, building Grade-A facilities, leasing and operating them until stable, then selling to institutional buyers – so returns come from development value rather than just rental income.

Buy – land and underwriting: the fund buys land in established industrial clusters after due diligence with Tier 1 advisers. Land conversion and approvals typically take two to three quarters.

Build – Grade-A development: a modular construction package that KSH INFRA estimates is about 20% cheaper, with horizontal building that can be paused or sped up to match leasing. Each building takes about nine months.

Lease and operate – stabilisation: the fund targets industrial occupiers, who tend to sign long leases and invest heavily in their own fit-outs, and aims to stabilise each asset within about six months of completion.

Exit – sale: stabilised projects can be sold individually to institutions, family offices or HNIs, or as a portfolio to institutions or InvITs.

These are the manager's assumptions, not assured outcomes.

KSH INFRA Fund I Target Markets and Asset Focus

KSH INFRA Fund I focuses on Grade-A industrial and logistics parks in Pune, Chennai, Bengaluru and Mumbai, four of India's main industrial and warehousing hubs.

Industrial parks serve manufacturing, engineering, assembly, office and workforce needs as well as logistics, which makes them broader than pure warehousing. Demand drivers include rising consumption, manufacturing growth, e-commerce, greater use of third-party logistics and the formalisation of supply chains, all of which favour modern Grade-A space.

KSH INFRA Fund I Development Pipeline

KSH INFRA Fund I has six identified projects across Pune and Chennai covering 252 acres and about 6.9 million sq ft of leasable area, representing over ₹1,200 crore of planned deployment across the fund and co-investment.

Pune accounts for about 4.1 million sq ft and Chennai about 2.8 million sq ft. Pipeline as of the August 2026 teaser.

KSH INFRA Sponsor Track Record

KSH INFRA has developed seven industrial parks, delivered over 4 million sq ft for 25+ clients, invested more than ₹2,000 crore and completed four exits, with 3+ million sq ft under development. These are the sponsor's past projects, not Fund I holdings or returns.

Past partners include Morgan Stanley, Mapletree, Indospace and WSB Real Estate Partners. In one example, a 1 million sq ft asset was developed and leased, partly sold to Morgan Stanley in 2018 and fully exited to Mapletree in 2021.

KSH INFRA Fund I Minimum Commitment, Fees, Hurdle and Carry

The minimum commitment in KSH INFRA Fund I is ₹1 crore, with management fees falling from 2.00% to 1.00% and carry from 20% to 12.5% as commitment size rises, all above a 12% hurdle with 100% catch-up.

Fees are charged on committed capital during the commitment period and on net invested capital after, payable quarterly in advance and excluding GST. Operating expenses are charged at actuals, capped at 0.5% a year of commitment.

Drawdowns: 5% on signing the Contribution Agreement, with a further 20–25% already earmarked for seed assets; total drawdown is expected to reach about 50–60% by first close.

All terms are proposed and may vary by investor category; the PPM and fund documents set the final terms.

How Is KSH INFRA Fund I Taxed?

KSH INFRA Fund I, as a Category II AIF, generally has pass-through status, so investors are taxed directly on their share of the fund's capital gains and other income rather than the fund paying tax. The teaser's model assumes about 80% of equity gains are taxed as long-term and 20% as short-term capital gains. Actual tax depends on the nature of each income stream and your circumstances, so take advice from a tax professional. See ALTPORT's guide to AIF fees and charges.

KSH INFRA Fund I Risks

The main risks of KSH INFRA Fund I are land, approval, construction, leasing, leverage, market, exit, liquidity and concentration risk; there is no guarantee of target returns or protection of capital.

• Land and title risk: acquisition, allotment and title checks can delay projects.
• Approval risk: conversions and approvals can take several quarters.
• Construction risk: cost overruns and delays are possible even with modular building.
• Leasing and tenant risk: returns depend on finding and keeping suitable industrial tenants.
• Leverage risk: projects assume borrowing of about 60% of cost.
• Market and valuation risk: demand, rents and asset values move with the economy and may differ from underwriting.
• Exit risk: results depend on exit valuations, buyer demand and prevailing cap rates.
• Liquidity risk: AIF units are not freely tradable and capital is locked in for the fund's term.
• Geographic concentration: exposure is limited to four cities.
• Capital-loss risk: investors can lose part or all of their capital.

The PPM sets out the full risk factors.

Is KSH INFRA Fund I Right for You?

KSH INFRA Fund I suits investors who can commit at least ₹1 crore for five and a half years or more, accept development and leasing risk, and want exposure to Grade-A industrial real estate rather than listed equities. Investors can compare it with other real estate and private credit AIFs, browse the top AIFs in India, read mutual fund vs PMS vs AIF or speak to an ALTPORT advisor.