GIC Private Limited, Singapore’s sovereign wealth fund, and global logistics real estate firm ESR have announced that they have entered into an 80:20 strategic partnership to establish a US$ 750 million joint venture that will develop and acquire industrial and logistics assets in India.
The Joint Venture will be seeded with a roughly 2.2 million square foot build-to-core asset, located in close proximity to the large consumption hubs of Mumbai and Thane.
Under the joint venture, the companies will develop and own institutional-grade, state-of-the-art industrial and logistics facilities as well as acquire core assets, focusing on Tier 1 and Tier 2 cities across India.
GIC has been investing in India for more than a decade. 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.
Earlier this year, ESR and GIC formed a joint venture for China logistics real estate. Both firms set up JV, with a total equity commitment of $500 million, that focused on building institutional-grade logistics facilities in key cities across China.
Also, they formed the $700 million Australia-focused, core plus logistics JV ESR Australia Development Partnership (EADP) fund that focuses on strategically located sites that benefit from infrastructure or proposed infrastructure upgrades in the eastern seaboard cities of Sydney, Melbourne, and Brisbane in Australia.