GIC, ESR Cayman enter $ 750 mn JV

ESR Cayman and Singapore’s sovereign wealth fund GIC recently entered into an 80:20 strategic partnership for a joint venture worth $750 million for the development and acquisition of logistics and industrial assets in India.

The joint venture will focus on Tier 1 and Tier 2 cities across the country to develop and acquire logistics and industrial facilities. In the first place, the joint endeavour will begin with about 2.2 million sq ft build-to-core asset situated near the large consumption centres of Thane and Mumbai.

The Chief Investment Officer (real estate) of GIC, Lee Kok Sun, commented that this venture was a demonstration of their trust and confidence in the long-term potential of that market. Kishore Gotety, co-head of real estate in GIC (Asia ex-China) stated that the relentless growth of the e-commerce development in India fortified by the increasing internet infiltration was expected to drive solid interest for logistics and industrial assets. Changing supply chain, low-vacancy levels and emphasis on infrastructure development had further supported their claims. The joint-venture was well-situated to profit by the tailwinds.

ESR India’s country heads, Jai Mirpuri and Abhijit Malkani stated that the strategic partnership provided the organisation with prompt scale to underwrite India’s modernising logistics and industrial landscape. They also added that they wanted to tap these high growth potentials and further expand their portfolio.

As of 30 June 2020, the fair value of the properties and the investments directly held by the ESR and the assets that were being managed with respect to the investments and funds vehicle was recorded at approx $26.5 billion. The GFA (gross floor area) of the properties that were under development and the properties that were completed, along with the land held for future projects contained 18.7 million sq mt, in total.

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