Singapore’s sovereign wealth fund GIC and ESR Cayman Limited have, on Dec 22, entered into an 80:20 strategic partnership.
Under the partnership, both companies will establish a US$750 million ($1 billion) joint venture to develop and acquire industrial and logistics assets in India.
The joint venture will develop and own institutional-grade, state-of-the-art industrial and logistics facilities as well as acquire core assets across India, with a focus on Tier 1 and Tier 2 cities.
The joint venture will be seeded with a 2.2 million sq ft build-to-core asset located near Mumbai and Thane.
“We are pleased to establish this Joint Venture with ESR, a leading integrated logistics platform, to develop and acquire high-quality industrial and logistics assets in prime locations in India. GIC has been investing in India for more than a decade, and this investment is a testament to our confidence in the long-term potential of this market,” says Lee Kok Sun, chief investment officer of real estate at GIC.
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“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, bring institutional-grade assets into this market, and generate resilient returns,” adds Kishore Gotety, co-head (Asia ex-China) of real estate at GIC.
“We are very excited to extend our partnership with GIC as it firmly demonstrates ESR’s capability and track record of developing best-in-class, strategically located industrial and logistics facilities in prime locations across India. This strategic partnership provides us with immediate scale to capitalise on the early growth stages of India’s rapidly modernising industrial and logistics landscape and tap high growth potential opportunities and further expand our industrial and logistics portfolio,” stated Abhijit Malkani and Jai Mirpuri, Country Heads, ESR India.
As at 10.19am, shares in ESR Cayman are trading on the HKEX at HK$25.55 ($4.39).
