Bengaluru: Global asset manager Brookfield on Wednesday said it has acquired a 10.5 million sq ft portfolio from ESR India, making its entry into the country’s industrial and logistics real estate sector.
As part of the transaction, Brookfield has committed ₹4,300 crore towards the acquisition and the future development of the portfolio, with ESR continuing to manage the properties for the near term.
The are spread across 400 acres in six metro clusters, which include eight Grade A parks, serving Mumbai, Pune, Delhi-National Capital Region, Chennai and Kolkata, among others.
The operating portfolio is 98% leased and serves a diversified mix of logistics and industrial occupiers. The assets accommodate a range of uses, including light manufacturing facilities, fulfilment centers and warehouses, providing Brookfield with immediate scale across some of India’s leading industrial and logistics markets.
Ankur Gupta, deputy chief investment officer and head of Asia Pacific and Middle East, Real Estate at Brookfield, said, “Our market-leading presence across India’s office and hospitality sectors provides a strong foundation to deepen our real estate footprint and expand into the logistics and industrial sector. As India’s integration into global supply chains accelerates, high-quality logistics infrastructure will enhance the country’s logistics capabilities and cost competitiveness.”
Brookfield is one of the largest owners and operators of real estate assets in the country, with a portfolio of over $13 billion across office and hospitality, including Brookfield India Real Estate Trust and the Leela Palaces Hotels and Resorts Ltd.
The acquisition builds on the relationship between Brookfield and ESR across Asia Pacific. “Brookfield’s acquisition of the portfolio underscores the value created through ESR’s integrated platform and the strength of our logistics business in India. ESR will continue to manage the portfolio, providing continuity for customers while supporting its next phase of growth,” Abhijit Malkani, chief executive officer (CEO), India at ESR, said.
Institutional inflows
The warehousing and logistics sector has seen substantial interest from institutional investors in recent years. Mint reported in August that the logistics platform of private equity firm Alta Capital is acquiring warehouses in three metros from Singapore’s Xander Investment Management for around ₹2000 crore.
Blackstone-backed launched its initial public offering (IPO) in August raising ₹2600 crore, as the country’s warehousing and industrial sector becomes increasingly institutionalized.