Logistics development platform ESR expands its operations in the national capital, acquiring around 8 acres of land from real estate firm TARC.
Located in Alipur, Delhi-NCR, the in-city warehouse has a development potential of around 4 Lakh sq ft. “TARC wants to completely focus on the upper mid-income and luxury homes segment and will cash out non-core businesses,” said a person aware of the deal.
The realty firm TARC, last year sold a warehousing asset in North Delhi to BREP Asia II EIP Holding (NQ) Pte Ltd, an affiliate of funds controlled, managed, and/or advised by Blackstone Inc (BREP) for Rs 295 crore, marking this as its second warehousing asset sale.
Offloading non-core assets including warehousing and retail assets for a while now, the realty firm is in talks with global funds to offload more retail and warehousing assets.
“The residential market has been performing exceptionally well and sales have reached almost 2014 level. TARC want to fast track the residential projects and reduce debt.,” said another person aware of the plans
The last few years have been well lit for the Indian warehousing segment as growing demand from e-commerce, logistics firms, and easing of policies such as GST reform have been attracting large institutional investors allocating fresh capital for the segment.
“These sites are well-suited for mid-mile logistics requirements of large e-commerce tenants. ESR is looking to add the much in demand in-city distribution centers. The firm is looking to buy both greenfield and brownfield properties not exceeding more than 15 acres of land area,” said one more person quoted above.
The industrial and logistics real estate platform is eyeing to set up land acquisitions and build in-city distribution centers to further expand its portfolio.
Last year, the company closed two land acquisitions in Gujarat and Chennai. In India, it is currently present in nine cities with 16 operational sites and a total gross floor area (GFA) of about 18 million sq ft.