Global investment giants such as Blackstone Group, Singaporean sovereign fund GIC, Gaw Capital, and Canadian pension fund Ontario Municipal Employees’ Retirement System (OMERS), among others, have put in bids to buy the stakes held by German investor Allianz and Asia-focussed logistics developer ESR in the logistics platform floated by the duo in the country, said sources aware of the development.
Through this deal, Allianz plans to exit its 50% investment and ESR plans to sell 10-20% stake out of its 50% holding in the platform. Aftet the deal, ESR would continue to operate the properties, sources said.
“The total size of the deal is about $300 million (Rs 2,460 crore) and the total value of assets is $450 million to $475 milion,” a source said, adding that the final bidder will get to own about 70% in the platform.
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Mails sent to ESR and Allianz did not elicit any response. Blackstone and OMERS spokespersons did not offer any comment for the article. Mails sent to GIC and Gaw Capital did not elicit any response. “Currently, they are negotiating with shortlisted bidders. They will finalise the winning bid in some time,” a source said.
The platform, set up in late 2018, has eight assets with an area of 10.5 million square feet. Sources said the platform is running a bidding process through Anarock Capital. A spokesperson of Anarock Capital did not offer any comment on the subject.
The 50:50 partnership between ESR and Allianz planned to invest $1 billion in the venture.
In late 2022, GIC has set up a joint venture with ESR to set up logistics properties in the country. Many in the banking circles believe that GIC is the strong contender for the Allianz-ESR assets. GIC is also in the final lap of buying 50% assets of Brookfield in Mumbai and Shapoorji Pallonji Allianz groups property in Hyderabad.
GIC is also in the process to buy into the assets of The Xander Group’s 2015 vintage fund. The Singaporean investor has also emerged as the finalist to buy the 2.4 million sq ft Waverock Property of Shapoorji Pallonji and Allianz in Hyderabad.
Gaw Capital, which announced the India team in 2022, is looking to enter new areas such as warehousing , data centres and so on.
Blackstone set up a platform for warehousing called Horizon Industrial Parks headed by Rahul Pandit in 2022.
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In 2021, funds managed by Blackstone acquired Embassy Industrial Parks from Warburg Pincus Inc and Embassy Group for an enterprise value of $700 million. It also has a joint venture with Hiranandani Group for warehousing assets in the country.
Since inception, Horizon has added portfolio of 3.7 million sq ft to its existing portfolio and building another 5 million sq ft with a capital outlay of Rs 4,500 crore. Canadian investor OMERS is investing in the energy and infrastructure space in the country and looking to expand its investments in the country, sources said.
