GIC, ESR Form $750 Million JV to Invest In Indian Industrial Realty

Singapore’s sovereign wealth fund GIC Pte Ltd and ESR Cayman Ltd entered into an 80:20 partnership, to set up a $750 million joint venture to develop and acquire industrial and logistics assets in India. The JV will develop an

BY Realty Plus
Published - Thursday, 24 Dec, 2020

GIC, ESR Form $750 Million JV to Invest In Indian Industrial Realty

Singapore’s sovereign wealth fund GIC Pte Ltd and ESR Cayman Ltd entered into an 80:20 partnership, to set up a $750 million joint venture to develop and acquire industrial and logistics assets in India. The JV will develop and own industrial, logistics facilities as well as acquire core or operational assets, focusing on Tier 1 and Tier 2 cities. The JV will be seeded with a 2.2 million sq ft build-to-core asset near Mumbai and Thane. Kishore Gotety, co-head (Asia ex-China) of real estate, GIC, said, “Continued e-commerce growth in India over the long term, reinforced by rising internet penetration, is expected to drive strong demand for industrial and logistics assets. This is further supported by the emphasis on infrastructure development, changing supply chains, and low vacancy levels. This joint venture is well-positioned to benefit from these tailwinds, bring institutional-grade assets into this market, and generate resilient returns.” Lee Kok Sun, chief investment officer of real estate, GIC, said, “GIC has been investing in India for more than a decade, and this investment is a testament to our confidence in the long-term potential of this market.” “This strategic partnership provides us with immediate scale to capitalize on the early growth stages of India’s rapidly modernizing industrial and logistics landscape and tap high growth potential opportunities and further expand our industrial and logistics portfolio, said Abhijit Malkani and Jai Mirpuri, country head, ESR India.