International Finance

ESR to develop a $45 mn logistics park in India

ESR India_IFM_Image
The project spreads over 38 acre and will serve as the hub for light manufacturing and logistics operations

Hong Kong-based leading logistics real estate platform ESR is set to develop a logistics park in India for an investment of around $45 million, media reports said. The new logistics park will be developed at Chakan near Pune.

The project spreads over 38 acre and will serve as the hub for light manufacturing and logistics operations. The logistics park will be ESR’s second development in Chakan. The company said in a statement that of the 38 acres, 26 acres are already leased and will be delivered by May 2021.

In this regard, Abhijit Malkani and Jai Mirpuri, country heads of ESR India, told the media, “Chakan has been a significant location for our expansion in India due to its established industrial ecosystem and increasing demand driven by national and global companies for Grade A spaces in this region.”

In December, it was reported that Singapore-based sovereign wealth fund GIC and Hong Kong-based logistics developer ESR Cayman have announced a $750 million joint venture (JV) to develop and acquire industrial and logistics assets in India. Both parties announced that they have entered into an 80:20 strategic partnership.

The joint venture formed by GIC and ESR Cayman will focus on Tier 1 and Tier 2 cities across India. To begin with, the JV will invest in a 2.2 million sq ft build-to-core asset, located around Mumbai.

Kishore Gotety, co-head (Asia ex-China) of real estate at GIC told the media, “Continued ecommerce growth in India over the long term, reinforced by rising internet penetration, is expected to drive strong demand for industrial and logistics assets.”

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