GIC And ESR Launches USD 600 M Joint Venture


GIC and ESR Group, announces forming a $600 million joint venture, eyeing to acquire income-producing core industrial and logistics assets in India.

GIC will hold an 80 percent stake in the JV and ESR – Asia Pacific-focused logistics real estate platform. The platform is backed by private equity firm Warburg Pincus – will own 20 per cent.

The new core JV intends to provide targeted capital for investments in India’s core industrial and logistics assets. The JV is an extension of the two companies’ existing partnership in India, which began in 2020, with the initial capital pool dedicated to investing in development and value-add logistics and industrial opportunities throughout India.

It will invest in stabilised operational assets in strategic locations across Tier I and Tier II cities, providing focused capital dedicated to enabling the platform’s inorganic growth.

Investments in enabling sustainable infrastructure, according to the firms, are critical to the country’s development. The industrial and logistics asset class is expected to outperform other real estate and infrastructure asset classes in the medium term, thanks to an increase in the share of organised retail and ecommerce, as well as emerging sectors such as electric vehicles and semiconductors.

ESR India, a subsidiary of the ESR Group, manages approximately $1.7 billion in assets and over 18 million square feet of gross floor area.

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