Singapore’s GIC has teamed up with ESR Cayman to invest $750m (€604m) in industrial and logistics assets in India.
The sovereign wealth fund will hold an 80% stake in the joint venture which will be seeded with a 2.2m sqft build-to-core asset, located in close proximity to the large consumption hubs of Mumbai and Thane.
The venture intends to develop and own industrial and logistics facilities as well as acquire core assets in cities across India, the companies said in a joint statement.
Lee Kok Sun, CIO of real estate, GIC, said: “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.”
Kishore Gotety, co-head (Asia ex-China) of real estate, GIC, said: “Continued 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.
“This is further supported by the emphasis on infrastructure development, changing supply chains, and low vacancy levels. This joint venture is well-positioned to benefit from these tailwinds, bring institutional-grade assets into this market and generate resilient returns.”
Abhijit Malkani and Jai Mirpuri, country heads, ESR India, said: “This strategic partnership provides us with immediate scale to capitalise on the early growth stages of India’s rapidly modernising industrial and logistics landscape and tap high growth potential opportunities and further expand our industrial and logistics portfolio.”
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