ESR JVs With Allianz Real Estate To Invest $1 Billion In India

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    Logistic giant e-Shang Redwood (ESR) has joined hands with global asset manager Allianz Real Estate. The strategic partnership is expected to invest around $1 billion, including debt, into India’s rapidly growing logistics and industrial real estate market.

    The joint venture will focus on developing large-scale logistics and industrial facilities in eight key cities—Mumbai, Pune, Chennai, Delhi, Ahmedabad, Kolkata, Bengaluru, and Hyderabad. Also, the investment programme will identify opportunities to acquire assets in these cities.

    “We are delighted to partner with Allianz, an existing strategic partner of ESR in other geographies,” Livemint quoted Charles de Portes, co-founder and president of ESR, as saying. “This JV with a leading institutional investor who has deep experience in Asia marks a key milestone in our regional growth plan.”

    The JV’s investment programme will start with an immediate equity commitment of $225 million, to be funded on a 50:50 basis by Allianz and ESR. The investment would subsequently be converted into a $1 billion assets.

    In fact, ESR kicked off its first project in India, an industrial and logistics park in Chakan MIDC (Maharashtra Industrial Development Corporation), Pune.

    About Logistic Industry

    The rapid increase in e-commerce due to smartphone penetration and a growing acceptance of online payments, it seems to be a good time for the logistics industry. Last year,  the warehousing and logistics sector attracted investments of more than a billion dollars.

    In north India, the recently-opened KMP Expressway is expected to emerge as a hub of logistics and warehousing industries in the next five years.

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