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Blackstone pushing funds into India’s logistics landscape

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Post the implementation of the GST, the Indian logistics and warehousing sector has seen a new dawn. Along with the emergence and the growth of e-commerce, the industry is going through many transformative phases simultaneously.

Also, the infrastructure tag to the logistics industry has made it a lucrative one and it has been able to catch the attention of the investors, not only in India but globally.

Blackstone Group, one of the largest owners of warehousing spaces across the globe and the private equity major from the US, has now determined to invest big in India’s warehousing and logistics sector.

The group being the owner of India’s largest office real estate portfolio is now eyeing to acquire and expand in the logistics sector of the country. They have also advanced talks with a few companies.

Hiranandani Group is one such company. According to a source, Blackstone is in talks with Hiranandani Group to acquire 50% stake in the realty developer’s logistics venture that has over 12 million sq ft assets under construction in Pune and Chennai.

Apart from Hiranandani, Blackstone has also initiated advanced talks with Allcargo Logistics to acquire around 70% of the stakes in its 9 million sq ft warehousing portfolio.

The investment in the two companies will be around $150 million of which $6o million will be in Hiranandani’s GreenBase and the rest $90 million in Allcargo Logistics. The deal will provide control of more than 21 million sq ft of warehousing space, making Blackstone the second-largest real estate owner in India.

Blackstone will create a platform, or a joint entity with Hiranandani, to build, own and operate logistics parks across various cities with existing demand or the potential to emerge as large consumption centers.

Blackstone has so far invested over $50 billion in the logistics sector and owns 565 million sq ft of warehousing space whereas in India this will be the first time the global investor will be investing in the logistics sector.

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