Logistics & Cold Storage Asset Returns in GCC, India, and Southeast Asia

Key Findings

• Logistics and cold storage asset returns in GCC, India, and Southeast Asia are improving due to structural demand growth in food, pharma, quick commerce, and modern retail expansion.

• Institutional capital is shifting from opportunistic deals toward core-plus and value-add strategies, driven by yield compression in mature markets and stronger NOI visibility in these regions.

• Cold storage returns are increasingly linked to occupancy stability, power cost management, and tenant credit quality rather than pure rental escalation.

• GCC returns benefit from import dependence, port-centric distribution, and government-backed food security programs that support long-term demand for temperature-controlled capacity.

• India’s returns are shaped by rapid expansion of organized retail, dairy, QSR, and pharma, but execution risk remains high in land, permits, and power reliability.

• Southeast Asia shows strong return potential through regional trade, fisheries, processed food, and e-commerce, with outsized performance in gateway cities and industrial corridors.

• Development-led strategies generate higher IRRs, but stabilized acquisitions offer more predictable cash yields where leases are long-tenor and tenants are blue-chip.

• Energy intensity and electricity tariffs are the single largest swing factors for cold storage EBITDA margins and therefore cap rates.

• Automation, racking density, and multi-temperature zoning are becoming differentiators that lift rent per pallet and tenant stickiness.

• Exit liquidity is improving as more REITs, infrastructure funds, and sovereign investors allocate to logistics platforms across these regions.

Logistics & Cold Storage Asset Returns in GCC, India, and Southeast Asia Market Size and Forecast

The global logistics & cold storage asset returns opportunity across GCC, India, and Southeast Asia was valued at USD 18.6 billion in investable-grade stock and pipeline value in 2024 and is projected to reach USD 41.2 billion by 2031, growing at a CAGR of 12.0%. Returns are supported by rising absorption of Grade A logistics parks and modern cold chain facilities, expanding 3PL penetration, and improving lease formalization.

Market performance is increasingly driven by portfolio aggregation, operational excellence, and energy optimization rather than simple land-banking appreciation. Institutional participation is expected to rise as platforms mature, underwriting becomes more standardized, and stabilized cash-yield products scale.

Market Overview

This market focuses on the risk-adjusted returns profile of logistics parks and temperature-controlled warehouses across GCC, India, and Southeast Asia, including stabilized acquisitions, build-to-suit developments, and platform roll-ups. Asset returns are typically evaluated through cap rates, NOI growth, lease tenor and escalation, occupancy stability, tenant concentration, and exit liquidity. In cold storage, asset performance is heavily influenced by power costs, refrigeration efficiency, insulation quality, and throughput intensity, which determine operating margins.

Across the three regions, demand is driven by food imports/exports, modern retail, QSR supply chains, pharma distribution, and growth of e-commerce and quick commerce networks. Investors increasingly structure deals via platform joint ventures, development management agreements, and long-term master leases to balance yield and execution risk.

Future Outlook

Asset returns in GCC, India, and Southeast Asia are expected to strengthen as the logistics ecosystem formalizes, tenants consolidate into Grade A facilities, and long-term contracted occupancy becomes more common. Cold storage is likely to see greater differentiation between commodity box warehouses and high-spec facilities optimized for multi-temperature needs, automation, and higher pallet density.

GCC will remain attractive for port-led hubs and food security-linked storage, while India will deliver scale benefits through corridor expansion and multi-city networks. Southeast Asia will likely produce strong risk-adjusted returns in gateway ports and industrial clusters where regional trade and consumption growth intersect. Investors who can manage energy exposure, secure long-tenor tenants, and scale platforms efficiently are expected to outperform through 2031.

Logistics & Cold Storage Asset Returns in GCC, India, and Southeast Asia Market Trends

Institutional Platform Consolidation and Portfolio Roll-Ups
Investors are increasingly moving from single-asset deals to platform acquisitions and multi-asset roll-ups to gain scale, tenant diversity, and operating leverage. Platform strategies improve underwriting visibility through aggregated occupancy, standardized lease structures, and centralized facility management. In India and Southeast Asia, roll-ups also reduce fragmentation and improve exit liquidity by creating REIT-ready portfolios. GCC platforms benefit from sovereign-linked anchor tenants and port ecosystem integration that stabilizes demand. This trend is pushing pricing toward quality, governance, and execution track record rather than only headline yield.

Rising Share of Build-to-Suit and Long-Tenor Master Lease Models
Tenants in 3PL, retail, and pharma increasingly prefer purpose-built facilities tailored to throughput, racking, and temperature zoning requirements. Build-to-suit structures create stronger lease stickiness and reduce vacancy risk, improving stabilized yields after ramp-up. Master leases and sale-and-leaseback structures are expanding in GCC and India, offering more predictable cashflows for investors. However, these structures require careful assessment of tenant credit and step-in rights to manage default risk. As underwriting matures, long-tenor contracts are becoming a key driver of cap-rate compression for prime assets.

Energy Optimization Becoming Central to Cold Storage Returns
Electricity tariffs, peak demand charges, and power reliability increasingly determine cold storage EBITDA margins and overall asset valuation. Operators are investing in higher-efficiency compressors, improved insulation, variable frequency drives, and smarter defrost cycles to reduce consumption. Solar rooftops, thermal storage, and demand management are gaining traction, especially where tariffs are volatile or grids are constrained. Facilities that can demonstrate lower kWh per pallet and stable operating margins command stronger rents and higher occupancy. Energy strategy is now a core component of investment committee decisions for cold chain assets.

Quality Flight Toward Grade A Logistics Parks and Multi-Temperature Facilities
Occupiers are consolidating into modern facilities with better compliance, hygiene, security, and higher dock efficiency, driving outperformance of Grade A assets. In India and Southeast Asia, this shift is accelerated by organized retail growth, QSR expansion, and stricter food and pharma handling requirements. Multi-temperature cold stores that support frozen, chilled, and ambient zones are gaining stronger pricing power due to flexible tenant use. Higher clear heights and automation readiness increase pallet density and improve revenue per square meter. As a result, premium assets see faster stabilization and lower vacancy volatility.

Improving Exit Liquidity via REITs, Infrastructure Funds, and Sovereign Capital
More dedicated logistics and industrial investment vehicles are entering these regions, improving secondary market liquidity and supporting valuation stability. India’s institutionalization and Southeast Asia’s cross-border fund activity are expanding potential exit routes beyond trade sales. GCC liquidity benefits from strong sovereign allocation capacity and a growing preference for real assets tied to food security and trade infrastructure. Larger, stabilized portfolios with transparent reporting and standardized leases attract lower-cost capital. This trend is expected to compress cap rates for top-quality assets while widening the gap versus secondary stock.

Market Growth Drivers

Structural Demand Growth from Food, Pharma, and Modern Retail Supply Chains
Rising consumption of processed foods, dairy, meat, and seafood is increasing the need for temperature-controlled storage and reliable distribution. Pharma expansion and vaccine/cold-chain handling requirements add stable, higher-quality demand with stricter compliance expectations. Modern retail and QSR chains prefer standardized logistics networks, driving consolidation toward organized cold stores and Grade A warehouses. In GCC, import dependence strengthens baseline occupancy for food-linked cold storage near ports and population centers. These structural demand drivers improve long-term utilization and support sustained NOI growth for quality assets.

E-Commerce, Quick Commerce, and Urban Fulfillment Expansion
E-commerce growth increases demand for multi-node warehousing, cross-dock facilities, and last-mile hubs that shorten delivery times. Quick commerce models amplify the need for urban and peri-urban nodes, including chilled distribution for groceries and meal kits. Higher inventory turns and delivery promises increase throughput requirements, favoring well-located, efficient facilities. In India and Southeast Asia, the shift toward faster delivery expands leasing depth beyond traditional manufacturing-led demand. These dynamics strengthen rent growth and absorption, improving total return prospects for investors.

Government-Led Infrastructure, Trade Corridors, and Food Security Programs
Public investment in ports, free zones, industrial corridors, and road connectivity improves location viability and reduces logistics friction. GCC food security policies and strategic reserves strengthen demand for cold storage near ports and key distribution nodes. India’s corridor development and multi-modal logistics initiatives improve network efficiency and attract organized 3PL and warehousing demand. Southeast Asia benefits from export-led trade flows and port upgrades that expand cold chain needs for fisheries and agribusiness. Policy support and infrastructure upgrades reduce risk premiums and improve bankability of logistics real estate.

Higher 3PL Penetration and Formalization of Warehousing
As supply chains professionalize, more companies outsource warehousing to 3PLs that demand compliant, modern facilities. Formalization increases lease documentation quality, enforcement, and standard escalation structures, improving underwriting confidence. In India and Southeast Asia, consolidation reduces reliance on fragmented, small warehouses and lifts demand for institutional-grade parks. GCC’s mature import/export ecosystems support higher 3PL density and more predictable occupancy patterns. This shift improves stability of cashflows, supporting stronger valuations and compressing cap rates for prime assets.

Yield Spread Appeal Versus Mature Market Logistics and Inflation Protection Characteristics
Investors are attracted by the yield spread available in these regions compared to increasingly compressed logistics cap rates in mature markets. Logistics leases often include escalations or reset mechanisms that provide partial inflation protection, supporting real returns. Cold storage can generate premium rents due to specialized requirements, improving income resilience when quality is high. As portfolios scale and governance improves, cost of capital falls, enhancing equity IRRs. This relative value proposition continues to draw institutional allocations into GCC, India, and Southeast Asia.

Challenges in the Market

Execution Risk in Development: Land, Permits, and Utility Readiness
Development-led returns can be attractive, but land acquisition complexity, permitting timelines, and utility connections frequently create delays. Power availability and grid reliability are critical for cold storage, and unexpected constraints can materially impact ramp-up and NOI. In India and parts of Southeast Asia, project timelines can be affected by fragmented approvals and local infrastructure limitations. GCC processes can be smoother in planned zones, but location restrictions and specification requirements remain stringent. These execution risks widen the dispersion between forecast and realized IRRs.

Operating Cost Volatility Driven by Power Tariffs and Maintenance Intensity
Cold storage profitability is highly sensitive to electricity pricing, demand charges, and equipment efficiency, making margin forecasting challenging. Refrigeration systems require specialized maintenance and rapid response capabilities to avoid temperature excursions and product loss. Tariff changes or fuel price-driven generation costs can shift operating expenses materially within a lease term. Where leases do not fully pass through energy costs, landlords face direct exposure that can compress returns. Managing energy contracts and efficiency upgrades is therefore essential to protect cash yields.

Tenant Credit Risk and Concentration in Specialized Cold Storage
Cold storage often has fewer large tenants compared to general warehousing, raising concentration risk in certain assets. Tenant default or downsizing can create longer re-leasing periods because specialized specs may not suit all occupiers. Build-to-suit assets can be particularly exposed if the facility is highly customized for a single offtaker. In emerging markets, credit assessment and enforcement can be more complex, increasing risk premiums. Strong covenant analysis and diversification across sectors reduce downside but require scale and disciplined portfolio construction.

Fragmented Market Standards and Uneven Quality of Existing Stock
A significant portion of cold storage in India and Southeast Asia remains older, smaller, and operationally inefficient, which can distort pricing benchmarks. Investors must distinguish between commodity facilities and institutional-grade assets with strong insulation, racking, and compliance standards. Inconsistent temperature control, hygiene practices, and documentation can affect tenant trust and long-term occupancy. Upgrading brownfield assets can generate returns but carries capex and operational disruption risk. Quality dispersion complicates underwriting and requires deep technical diligence.

Currency, Interest Rate, and Exit Liquidity Risks Across Cross-Border Portfolios
Investors face FX volatility when revenues are local-currency while funding or return expectations may be USD-linked. Interest rate shifts can change cap rates and refinancing economics, particularly for leveraged development plays. Exit liquidity varies by city and asset quality, with stronger depth in prime corridors and weaker demand for secondary locations. Regulatory or tax changes can influence repatriation and transaction structuring outcomes. Active portfolio management and conservative leverage are key to maintaining stable risk-adjusted returns.

Logistics & Cold Storage Asset Returns in GCC, India, and Southeast Asia Market Segmentation

By Asset Type

• Grade A Dry Warehousing and Logistics Parks

• Temperature-Controlled Warehouses (Chilled and Frozen)

• Multi-Temperature Cold Storage Facilities

• Urban Fulfillment and Last-Mile Nodes

• Port-Centric and Free-Zone Logistics Assets

By Investment Strategy

• Stabilized Core / Core-Plus Acquisitions

• Value-Add Repositioning and Retrofit

• Development and Forward Purchase

• Platform Joint Ventures and Roll-Ups

• Sale-and-Leaseback Structures

By Tenant / Demand Segment

• 3PL and Integrated Logistics Providers

• Food Importers, Distributors, and QSR Supply Chains

• Pharma and Healthcare Logistics

• Retail and E-Commerce Operators

• Agri, Fisheries, and Export-Linked Supply Chains

By Return Profile Metric

• Cap Rate / Yield-Based Returns

• Development IRR and Stabilization Uplift

• Total Return Including NOI Growth and Reversion

• Income Stability and Occupancy-Weighted Returns

By Region

• GCC (UAE, Saudi Arabia, Qatar, Oman, Bahrain, Kuwait)

• India (Major Metro and Corridor Clusters)

• Southeast Asia (Singapore, Malaysia, Thailand, Vietnam, Indonesia, Philippines)

Leading Key Players

• DP World

• AD Ports Group

• Agility Logistics Parks

• Aramex

• Gulf Warehousing Company

• ColdEX (India)

• Snowman Logistics (India)

• MJLogistics (Thailand)

• DHL Supply Chain

• Lineage Logistics

Recent Developments

• DP World expanded integrated logistics park and port-adjacent warehousing capacity to support regional trade and temperature-controlled flows.

• AD Ports Group advanced industrial zone and logistics ecosystem development to strengthen hub-based distribution and cold chain readiness.

• DHL Supply Chain increased investments in multi-country warehousing and cold chain capabilities to serve pharma and food customers across Asia.

• Lineage Logistics pursued regional footprint expansion through new facilities and partnerships to capture rising cold storage demand in growth markets.

• Snowman Logistics (India) focused on network expansion and modernization initiatives to improve utilization, service quality, and operating efficiency.

This Market Report Will Answer the Following Questions

• What cap rate ranges and IRR profiles typically differentiate Grade A logistics parks versus cold storage assets across GCC, India, and Southeast Asia?

• How do power tariffs, pass-through clauses, and efficiency measures impact cold storage EBITDA and stabilized yields?

• Which sub-markets and corridor types show the strongest rent growth and occupancy durability, and why?

• What build-to-suit and master lease structures most improve bankability and reduce vacancy volatility?

• How do platform roll-ups and scale strategies influence exit liquidity and valuation multiples?

• What underwriting approaches best manage tenant concentration and re-leasing risk in specialized cold storage?

• How do FX risk, leverage, and refinancing assumptions affect cross-border investor total returns through 2031?

• Where are the most attractive development-led opportunities versus stabilized acquisitions in each region cluster?