GIC and ESR have formed a US$600m (€610m) partnership to invest in core industrial real estate in India.
The 80:20 joint venture (JV) between the Singapore sovereign wealth fund and the pan-Asian logistics group is an extension of a partnership set up two years ago.
In the first venture, capital was directed into development and value-add logistics opportunities across India. The new core joint venture will seek to fund acquisitions of stabilised, operational assets in strategic locations in India’s tier one and tier two cities.
Abhijit Malkani, chief executive of ESR India, said: “India is on the cusp of supply chain transformation supported by automation, digitalisation and favourable government policies.”
Malkani said class A industrial and logistics development offered a variety of features to enable increasing operational efficiency, which was vital to this shift.
“With the JV platform, we will upgrade assets as required and add sustainability elements to ensure that we offer the same product quality to our customers as we do for products that we develop ourselves,” he said.
Jeffrey Shen and Stuart Gibson, ESR co-founders and co-CEOs said: “We are excited to work with GIC to capitalise on the strong growth in the logistics sector in India. This stems from our long and deep strategic relationship covering multiple geographies and funds.”
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