Assetz Group exits from JV with LOGOS at 15-18% IRR

01 Jun 2022

Assetz Group had exited its joint venture (JV) with global logistic fund LOGOS Group. The company has its focuses on residential, data centre and renewable energy business.

The exit was around 15-18% internal rate of return (IRR). LOGOS acquired 100% ownership of Assetz in the local platform.

This acquisition will include cash and land components that have been traded.

LI Sponsor Investment Pte Limited, owned by Assetz and LOGOS, has 9 million sq ft of gross leasable area with $500 million of assets under management across Bengaluru, Chennai and the National Capital Region (NCR).

After exiting, Assetz will own the Bangalore warehousing facilities but will be managed by LOGOS under the development management agreement. NCR and Chennai will be held by a LOGOS Venture and managed by LOGOS.

Assetz and LOGOS maintain an ongoing relationship through its JV in developing and managing Assetz’s Devanahalli and Nelamangala properties and other strategic mandates.

Assetz is also in the process of setting up a data centre fund of over $500 million.

Both the companies aimed to meet the strong demand from customers for modern logistics facilities in India and leverage the strong market fundamentals of this growing market.

With the Goods and Services Tax (GST) and the emergence of e-commerce, the Indian logistics and warehousing sector is moving towards a transformative growth phase.

The government has decided to accord infrastructure status to the logistics sector and allow developers access low-cost funds for development.

Blackstone Group acquired Embassy Industrial Parks at an enterprise valuation of Rs 5,250 crore from Warburg Pincus and Embassy Group. It is the largest logistics and warehousing deal in India.

Other funds like Canada Pension Plan Investment Board (CPPIB), Ascendas-Firstpace and Indospace also plan to expand their footprints in logistics and warehousing sector in India.

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Also read: Shriram Properties to sell 90 acres of land to LOGOS in Kolkata

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