Logistics realty: GIC, ESR Cayman JV to invest $750 million

By: |
December 23, 2020 6:15 AM

To develop, own industrial and logistics facilities, and acquire core assets across the country

Commenting on the development, Lee Kok Sun, chief investment officer (real estate), GIC, said, “This investment is a testament to our confidence in the long-term potential of this market.” (Representative image)Commenting on the development, Lee Kok Sun, chief investment officer (real estate), GIC, said, “This investment is a testament to our confidence in the long-term potential of this market.” (Representative image)

Singapore’s sovereign wealth fund GIC and ESR Cayman on Tuesday said that they have entered into an 80:20 strategic partnership to establish a $750-million joint venture to develop and acquire industrial and logistics assets in India, according to a statement.

The joint venture will develop and own industrial and logistics facilities as well as acquire core assets, focusing on Tier 1 and Tier 2 cities across India. To begin with, the joint venture will start with about 2.2 million sq ft build-to-core asset, located in close proximity to the large consumption hubs of Mumbai and Thane.

Commenting on the development, Lee Kok Sun, chief investment officer (real estate), GIC, said, “This investment is a testament to our confidence in the long-term potential of this market.”

Kishore Gotety, co-head (Asia ex-China) of real estate, GIC, said, “Continued e-commerce growth in India over the long term, reinforced by rising internet penetration, is expected to drive strong demand for industrial and logistics assets. This is further supported by the emphasis on infrastructure development, changing supply chains, and low vacancy levels. This joint venture is well-positioned to benefit from these tailwinds”.

Abhijit Malkani and Jai Mirpuri, country heads, ESR India, said that the strategic partnership provides the company with immediate scale to capitalise India’s rapidly modernising industrial and logistics landscape and tap high growth potential opportunities and further expand industrial and logistics portfolio.

ESR is an APAC focused logistics real estate platform by gross floor area (GFA) and by value of the assets owned directly and by the funds and investment vehicles it manages. As of June 30, 2020, the fair value of the properties directly held by ESR and the assets under management with respect to the funds and investment vehicles managed by ESR recorded approximately $26.5 billion, and GFA of properties completed and under development as well as GFA to be built on land held for future development comprised 18.7 million sq metres in total.

The transaction is subject to relevant regulatory approvals.

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