Singapore's sovereign wealth fund GIC and real estate investment manager ESR Group have set up a $600 million joint venture to buy profit-making industrial and logistics assets in India, they said in a joint statement last week.

The new JV, in which GIC is an 80% owner, is an extension of an existing partnership between the entities in India. It will invest in “stabilised operational assets” in tier 1 and tier 2 cities of the country.

A host of Indian corporations, including logistics firm Blue Dart Express and staffing solutions provider Quess, have been expanding in metros as well as smaller cities to tap into the demand for online shopping.

GIC and ESR expect industrial and logistics assets to outperform other real estate and infrastructure assets in the medium term on the back of the surge in online shopping as well as store purchases.

“India is at the cusp of a supply chain transformation supported by automation, digitisation, and favourable government policies,” ESR India chief executive officer Abhijit Malkani said in the statement.

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