Blackstone Real Estate has acquired Embassy Industrial Parks from Warburg Pincus and Embassy Group. Embassy Industrial Parks has 10.6 million sq ft of modern Grade A logistics and warehousing assets located across major industrial hubs in India.“We want to focus on office and residential for the short and medium term, in line with our strategy with our upcoming merger with Indiabulls Real Estate (IBREL),” says Aditya Virwani, COO, Embassy Group. The group expects to complete the process of merger of its certain housing and commercial projects with IBREL by the end of this year.“We got a good value for the warehousing assets,” avers Virwani. “The sector is doing well and will continue to do well, but it does need a lot of capital. As a developer, we don’t have that much capital that these funds have. Warehousing is a much tighter margin game than office. We need to look at opportunities, and office and residential is our forte. So we would rather allocate our funds in office and look at opportunity costs and get the best returns we can,” he adds.Virwani believes the warehousing sector is too nascent and has still not seen consolidation from Grade B warehouses to Grade A. “We just need to work on tighter margins,” he adds. “Now these funds can work on 18 per cent returns. For a developer like us, we could either make 18 per cent on warehousing or make 25 per cent on office. So it’s better to allocate capital in office. Also, we got a good value in a time when liquidity is difficult.”Virwani confirmed that the group will watch the warehousing market. “We still have some land banks that can be used for warehousing and will continue to aggregate land for it.”