ESR appears to be like to develop its India portfolio, defers partial exit plans

Asia Pacific-focused actual asset supervisor ESR Group, which was beforehand on the lookout for a partial exit and dilution of its logistics holdings in India, now plans to develop its portfolio after which search for an exit both by way of an infrastructure funding belief, sale to a non-public fairness agency or a strategic investor, three sources mentioned.

It owns and develops logistics property in India which are held underneath ESR India and the Indian operations of LOGOS, Australian subsidiary of ARA Asset Administration, which it acquired in 2022. It is usually investing in knowledge centres in India and is learnt to be organising a 50-MW colocation centre in Rabale, Mumbai.

The ESR group, one of many largest actual asset managers in APAC and the most important sponsor of REITs within the area, managed property price $156 billion on the finish of December 2023, with a gross ground space of round 525 million sq. toes (msf).

In keeping with ESR group’s 2023 annual report its property underneath administration in India had been at $1.7 billion on the finish of December with a gross ground space of simply over 30 msf. Income from India rose 13.4 per cent on 12 months to $12.4 million.

With a purpose to float an honest sized REIT or as on this case an InvIT in India would require a sizeable portfolio of 35-40 msf and that is what it’s aiming at, sources mentioned. ESR didn’t reply to an e-mail despatched looking for clarification on its plans.

ESR India has logistics property of 18 msf gross ground space, unfold throughout 15 websites in 9 cities, in line with its web site. LOGOS has round 5 tasks in India and in January this 12 months it together with Ivanhoe Cambridge introduced buying 66 acres in Chakan close to Pune, taking its whole holding there to 143 acres. Round ₹1,100 crore can be invested within the industrial micro-hub. It has developments in Bengaluru, Chennai, and the Nationwide Capital Area.

Logistics warehouses and industrial parks have change into massive enterprise in India with each world and home corporations investing within the sector. Industrial and logistics leasing in India touched a report excessive in 2023 at near 40 msf, pushed by third celebration logistics corporations which had a forty five per cent share.