GMR Group partners ESR Cayman unit for logistics park at Hyderabad airport

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Published: January 10, 2020 4:50:49 AM

The GMR Group is one of the older, well-established players in the airports infrastructure space. The infrastructure conglomerate, which has presence in energy, transport and urban infrastructure sectors, has recently met with aggressive competition from newer players in airports infrastructure including the Adani Group.

GMR Group, ESR Cayman, logistics park, Hyderabad airport, industry newsGMR’s logistics joint venture with ESR group comes close on the heels of the Adani Group’s recent announcement to expand its logistics business with the acquisition of Snowman Logistics.

GMR Hyderabad International Airport has entered into a joint venture with a subsidiary of Hong Kong-based ESR Cayman to develop a 66-acre logistics park at the Hyderabad airport city. The project has a total outlay of Rs 550 crore. ESR Hyderabad 1 holds 70% stake in the joint venture company, GMR Logistics Park, and GMR Hyderabad Aerotropolis holds the rest. “The JV proposes to develop a flagship airport centric logistics and industrial park providing state-of-the-art facilities for warehousing, distribution centers and non-polluting industrial such as light assembly,” GMR said in a press release.

The GMR Group is one of the older, well-established players in the airports infrastructure space. The infrastructure conglomerate, which has presence in energy, transport and urban infrastructure sectors, has recently met with aggressive competition from newer players in airports infrastructure including the Adani Group.

GMR’s logistics joint venture with ESR group comes close on the heels of the Adani Group’s recent announcement to expand its logistics business with the acquisition of Snowman Logistics.

The GMR Group reportedly has a debt of over Rs 20,000 crore and has been working out means to pare the debt. In 2019, the Tata Group and Hong Kong-based SSG Capital management entered into an agreement to invest around Rs 8,000 crore into GMR’s airports business. GMR Infrastructure also reportedly raised Rs 2,000 crore through non-convertible debentures.

The facility at the Hyderabad airport will support national and global trade to and from Telangana, ESR India representatives said. ESR is a logistics real estate conglomerate. As of June 30, 2019, the fair value of the properties directly held by ESR and the assets under management of ESR are around $20.2 billion.

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