Build-to-Suit Development and Leasing
One of the primary exit strategies for the buyer post-acquisition is to develop the land into a customized industrial facility (e.g., warehouse, factory, or logistics hub) and lease it to long-term tenants. This model allows:
- Steady rental income from anchor occupiers in sectors like logistics, EV, pharma, or FMCG
- Development of Grade-A industrial assets that attract institutional investors or REITs
- Use of build-to-suit agreements where tenant commitments reduce upfront vacancy risk
- Opportunity to leverage lease guarantees or rental escalations for stable cash flow
This approach transforms raw land into income-producing assets, increasing long-term value.
Sale to Institutional Investors or Industrial REITs
Another viable exit route is a capital gain-driven sale to REITs, industrial funds, or private equity investors after land appreciation or development. Key elements of this strategy include:
- Holding the land for 2–5 years to benefit from zoning upgrades or infrastructure completion
- Aggregating adjacent parcels for a strategic bulk sale
- Selling to REIT-backed platforms or logistics funds looking for ready-to-build or partially developed assets
- Monetizing through a forward sale agreement post-entitlement or partial construction
This strategy suits investors looking for capital appreciation and liquidity through structured divestment.
Joint Venture or Industrial Park Development
For larger parcels, the buyer may pursue a joint development model or create a multi-tenant industrial park, offering:
- Sale or lease of smaller subdivided plots to MSMEs, manufacturers, or logistics users
- Shared infrastructure (power, roads, drainage) to reduce cost per unit for occupants
- Long-term asset retention through a developer-operator model
- Revenue through lease income, utility management, and service charges
This strategy maximizes land utilization and unlocks value through phased, flexible monetization aligned with market demand.