Global PEs eye ESR India’s warehousing portfolio in potential ₹3,500 crore deal

Agreement that is likely to value the job La3,500 Crore (400-420 million dollars), in the final stages, three people with direct information about development.

One person, “Binding offers arrived on Thursday night. The firm will now sign a exclusiveness and continue to one of the bidder holders.” He said. Mint Firstly, the company’s warehouse portfolio on April 11 announced the plan to sell. JLL, a real estate consultancy company, consults ESR.

Blackstone, Brookfield and Ascendas spokesman refused to comment on this. ESR and JLL did not respond to Mint’s requests for comments on Thursday evening.

ESR India, a joint venture between Hong Kong based ESR Group and Germany’s Allianz Real Estate, is a logistics and industrial real estate company with approximately 24 million square meters of storage assets, including those who have not been in construction.

However, considering the interest between storage investors, assets attracted suitors. The company’s parks are located in the states such as Maharashtra, Gujarat, Hareana, Punjab and Odisha.

This is an attempt to sell a shareholder of ESR-ALLIANZ in the company. In 2023, the company planned to sell approximately 90% of the share and to maintain the remaining 10%. Although the Blackstone group approached it to cover it, the agreement was not passed.

The first person, “This time, the company is completely looking for the interest and therefore increasing investor,” he added.

Blackstone collected the warehouse portfolio. Earlier this year LaLogos is 1,700 Crore to buy India’s three warehouse parks in Luhari in Haryana and Chennai.

In 2018, ESR entered the partnership with Allianz and said that they would invest $ 1 billion, including debt to develop large -scale storage and industrial facilities in India.

Warehouse Opportunities

Xander Investment Management is also trying to make money from storage assets in the country. Alta Capital’s Logistics Platform Logicap, Horizon Industrial Parks, Capitaland Ltd, FirstSpace Realtly Supported Ascendas Firstspace and Morgan Stanley Real Estate Investments such as private capital firms had offered for existence. Mint Reported in June. As the process is still going on, the Alta Capital may be closer to make a deal.

According to data from Knight Frank India, a real estate consultancy, private capital investment in India Real Estate increased by 32% to 4.2 billion dollars in 2024 compared to the previous year. Storage has pioneered the accusation by overcoming the office sector, which constitutes 45% of these investments and has the highest share of PE investments since 2017.

The estimated of class A warehouse shares is supported by global investors such as US private capital company Blackstone, Canadian Pension Plan Investment Board, Singapore’s Egemen Return Fund, Singapore-based GLP and Hong Kong-based ESR Group.

According to JLL, India’s warehouse stock has reached 533.1 million square meters and the cities of approximately 100 million square meters of II-III, which have been an increase of four times since 2017 since 2017.

“This change means a fundamental change in the logistics landscape of the country during the implementation of goods and service taxes (GST) and a fundamental change in compatible with the speaking model.” He said. Central model helps to improve deliveries and reduce costs.

Last year, there was a solid demand in both settled and developing markets, and there was a combined absorption of 60 million square meters in the 20 storage markets in India.

He said that growth is primarily directed by consumption explosion and that 60% of online purchases were caused by level II and III cities.