New Delhi, Oct. 7 -- Canadian alternative investment firm (AIF) Brookfield has acquired a 100% interest in a 10.5-million-square-feet industrial and logistics portfolio from ESR India for Rs 4,300 crore ($444 million), marking its entry into the segment in India.
The investment includes the acquisition of the existing portfolio as well as future development of the assets. ESR will continue to manage the properties in the near term, the companies said in a joint statement.
Spread across around 400 acres in six metro clusters, the portfolio comprises eight Grade-A parks across key markets including Mumbai, Pune, Delhi-NCR, Chennai and Kolkata. The assets are located along industrial and freight corridors near major manufacturing and warehousing hubs, providing access to established consumption centres and logistics catchments.
The portfolio is around 98% leased to a diversified set of logistics and industrial occupiers. The assets include light manufacturing facilities, fulfillment centres and warehouses, giving Brookfield immediate scale in some of India's key industrial and logistics markets.
"Our market-leading presence across India's office and hospitality sectors provides a strong foundation to deepen our real estate footprint and expand into the logistics and industrial sector," said Ankur Gupta, deputy chief investment officer and head of Asia-Pacific and Middle East, real estate, Brookfield.
As India's integration into global supply chains accelerates, high-quality logistics infrastructure will enhance logistics capabilities and cost-competitiveness, Gupta said, adding that Brookfield is positioned to partner with governments, global institutions and corporations to deliver infrastructure solutions at scale.
"This transaction reflects the quality of the portfolio ESR has built and the strong institutional demand for modern logistics assets in India," said Abhijit Malkani, chief executive officer, India, ESR.
Brookfield's acquisition underscores the value created through ESR's integrated platform and the strength of its logistics business in India, Malkani said.
The transaction comes as India's industrial and logistics real estate sector benefits from investments in highways, dedicated freight corridors and other infrastructure, which are improving connectivity and supply-chain efficiency. Rising consumption, increasing e-commerce penetration and initiatives supporting domestic manufacturing are also driving demand for modern logistics and industrial facilities.
The acquisition builds on the relationship between Brookfield and ESR across the Asia-Pacific region.
Brookfield owns and operates real estate assets worth over $13 billion in India across office and hospitality, including through Brookfield India Real Estate Trust. Overall, it has around $33 billion in assets under management in India across infrastructure, energy, private equity, real estate, and credit.
Published by HT Digital Content Services with permission from VC Circle.