The Singapore sovereign wealth fund is partnering with APAC-focused logistics real estate platform ESR Cayman to establish a $750 million joint venture to invest in industrial and logistics real estate in India.
The 80:20 joint venture will develop and own institutional-grade, state-of-the-art industrial and logistics facilities as well as acquire core assets, focusing on Tier 1 and Tier 2 cities across India, a joint announcement on Tuesday said.
The joint venture will be seeded with a 2.2 million square foot build-to-core asset, located in close proximity to the large consumption hubs of Mumbai and Thane.
«This strategic partnership provides us with immediate scale to capitalize on the 2 early growth stages of India’s rapidly modernizing industrial and logistics landscape and tap high growth potential opportunities and further expand our industrial and logistics portfolio,» Abhijit Malkani and Jai Mirpuri, country heads, ESR India, said in the announcement.
Strong Demand
The industrial and logistics segment is a key growth driver of India’s real estate industry.
Kishore Gotety, GIC co-head (Asia ex-China) of Real Estate, said e-commerce growth in India over the long-term, reinforced by rising internet penetration, is expected to drive strong demand for industrial and logistics assets. Additionally, an emphasis on infrastructure development, changing supply chains, and low vacancy levels in India, is expected to support demand.
«GIC has been investing in India for more than a decade, and this investment is a testament to our confidence in the long-term potential of this market,» Lee Kok Sun, GIC chief investment officer of Real Estate, said.
