GIC and ESR Group have entered into an 80:20 strategic partnership to establish a $600 million core joint venture to acquire income-producing core industrial and logistics assets in India. This joint venture is an extension of the existing partnership in India between GIC and ESR, (initiated in 2020), with the initial capital pool dedicated to investing in development and value-add logistics and industrial opportunities across India.
The new JV provides focused capital dedicated to enabling inorganic growth of the platform. It will invest in stabilised operational assets in strategic locations across Tier-1 and Tier-2 Indian cities.
Jeffrey Shen and Stuart Gibson, ESR Co-founders and Co-CEOs said, “Capital partner support has been key to the growth of ESR’s new economy real estate platform. We are excited to work with GIC to capitalise on the strong growth in the logistics sector in India. As APAC’s largest real estate asset manager, ESR’s integrated fund management platform has provided our capital partners with access to some of the world’s best secular growth opportunities propelled by the positive trends of e-commerce and digital transformation. These trends open new investment opportunities to ESR and our capital partners as the demand for advanced, large-scale, well-located logistics and industrial assets become even greater.”
“India is at the cusp of a supply chain transformation supported by automation, digitisation, and favourable government policies. Class-A industrial and logistics developments offer a variety of features to enable increased operational efficiency, which is vital to this shift. With the Core JV platform, we will upgrade the 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,” says Abhijit Malkani, CEO, ESR India.