Asian logistics developer e-Shang Redwood is close to acquiring in excess of 200 acre in Thane for its logistics hub, which would be its biggest project in India planned so far.
Its Mumbai plans have been scaled up significantly with the backing of Allianz, the third-largest real estate fund in the world, which on Friday committed to jointly invest $1 billon in India.
ESR, co-founded by major private equity player Warburg Pincus, is backed by global investment companies including APG, SK Holdings, JD.com, CITIC CLSA, Goldman Sachs, CPPIB, PGGM, Ping An.
“We are in talks which are at its last stages for more than 200 acre at Bhiwandi. Mumbai for us is the most important hub for the warehousing business among all the states,” Gaurav Sharma, director, leasing and acquisitions at ESR Adisers India, told DNA Money.
ESR’s second funding deal with Allianz is India specific and involves immediate equity commitment of $225 million to be funded on a 50:50 basis by Allianz and ESR subsequently be converted into a $1 billion assets under management platform.
Such fund flows have helped ESR turn aggressive with an ambition to emerge as the largest player in the sector.
“Our objective is to be the market leaders in India in the next 2-3 years, and in the next 2-3 months you would hear a lot from us,” Sharma said at the sidelines of a CII-organised event on logistics sector.
Allianz-ESR combine said they would be investing in eight key target cities of Mumbai, Pune, Chennai, Bangalore, Hyderabad, Ahmedabad, Kolkata and the National Capital Region.
“In Pune we got 53 acre for creating 1.2 million square feet. In Kolkata we have acquired 75 acre from a closed motorcycle plant, and in Chennai we are identifying land. There we are at the last stages of closing the deal which would be in excess of 150 acre,” he said.
ESR last week conducted the groundbreaking ceremony for the Chakan facility which would get completed in the fourth quarter of 2019.
“In Uluberia near Kolkata, we have just started construction of 1.5 million square feet for which we have tied up with a major e-commerce player as a client for built-to-suit half a million square feet to be delivered to them by the middle of 2019,” he said.
BULLISH ON INDIA
Allianz-ESR combine said they would be investing in eight key target cities of Mumbai, Pune, Chennai, Bangalore, Hyderabad, Ahmedabad, Kolkata and NCR
- $1 billion – It along with Allianz plans to invest in India
- 53 acre – Land co has got in Pune for creating a 1.2 million square feet facility