India (Commonwealth Union) _ A joint venture between GIC, the sovereign wealth fund of Singapore, and ESR Group Ltd. aims to establish a USD 600 million fund for the purchase of logistics and industrial assets in India. In order to establish the fund worth approximately INR5,000 crore, GIC and ESR Group Ltd. announced an 80:20 strategic partnership. The fund will be used to purchase “income-producing assets”.
The joint venture is an expansion of the GIC and ESR Group Ltd. partnership that has been in place in India since it was established in 2020. The initial capital pool was set aside for investments in industrial and logistical opportunities across the South Asian nation that needed to be developed and added value to. According to a statement, it will invest in operational assets that have been stabilized in key regions across Tier 1-2 cities nationwide. In the medium term, it is anticipated that the industrial and logistics asset class will outperform other real estate and infrastructure asset classes thanks to an increase in the share of organized retail and e-commerce, supported by emerging industries like electric vehicles and semiconductors.
According to Abhijit Malkani, CEO of ESR Group Ltd. India, the South Asian nation is on the verge of a supply chain transformation backed by automation, digitization, and supportive governmental policies and industrial and logistics developments provide a variety of features that enable greater operational efficiency, which is essential to this shift.
With more than USD140 billion in assets under management, ESR Group Ltd’ s completely integrated development and investment management platform covers important APAC markets like China, Japan, South Korea, Australia, Singapore, India, New Zealand, and Southeast Asia. With USD 45 billion in assets under management, ESR is APAC’s largest REIT (Real Estate Investment Trust) sponsor and manager.
