Blackstone acquires warehouses from TARC for Rs 295 cr

By: |
September 07, 2021 8:13 AM

The Delhi-based developer, earlier known as Anant Raj Global, said the deal is part of its strategy to maintain focus on core development projects and unlock higher value through strategic and key land parcels in New Delhi.

warehousingThe land parcels are spread over 36 acre in Delhi’s Jindpur, Khera Kalan and Nangli Poona villages. It is built-to-suit land with a construction area of 1.2 million sq ft (MSF). (Representational image)

Real estate developer TARC on Monday said it has sold warehousing assets in north Delhi to BREP Asia II EIP Holding, an affiliate of funds controlled, managed and/or advised by Blackstone, for a total consideration of Rs 295 crore.

The Delhi-based developer, earlier known as Anant Raj Global, said the deal is part of its strategy to maintain focus on core development projects and unlock higher value through strategic and key land parcels in New Delhi. The land parcels are spread over 36 acre in Delhi’s Jindpur, Khera Kalan and Nangli Poona villages. It is built-to-suit land with a construction area of 1.2 million sq ft (MSF). “The company plans to use a part of the proceeds to fast-track residential projects, consolidating its strategy to develop higher yielding, future ready projects. This deal with Blackstone further paves the way for the management to structure and curate a portfolio of marquee developments with high-quality residential projects,” it said.

TARC is focusing on enhancing its development projects, and is also negotiating additional similar opportunities with Blackstone and other global funds. This has further strengthened its leadership position in the vibrant market of New Delhi and NCR, it added. The BSE-listed firm’s shareholders include Singapore’s sovereign wealth fund GIC and stock market investor Rakesh Jhunjhunwala. Blackstone is India’s largest warehousing space provider with 40 MSF of assets. In May this year, it acquired Embassy Industrial Parks, which controls 22 MSF of largely grade-A warehousing space across major industrial hubs. The deal is worth around Rs 5,200 crore.

The private equity major believes that e-commerce will fuel demand for logistics space, especially near city centres. It controls around 1.2 billion sq ft of logistics space worldwide. Indian warehousing and logistics have emerged as the most preferred real estate asset class for institutional investors pipping the all-time favourite commercial office segment for the first time during April-June 2021. It attracted an all time high $743 million in investments.

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