GIC, ESR establish US$600m joint venture to invest in India’s logistics assets

GIC and ESR Group have extended their existing partnership in India to set up a US$600 million joint venture to acquire income-producing core industrial and logistics assets in the country.

Both entities announced the initiative on Thursday (Nov 3), with global investment firm GIC and real estate investment company ESR Group to have an 80 per cent and 20 per cent stake in the strategic partnership, respectively.

The new joint venture will invest in stabilised operational assets in strategic locations across Tier 1 and Tier 2 cities in India. GIC noted an upsurge in the share of organised retail and e-commerce in the industrial and logistics asset class.

Said Jeffrey Shen and Stuart Gibson, co-founders and co-chief executives of ESR: “These trends open new investment opportunities to ESR and our capital partners as the demand for advanced, large-scale, well-located logistics and industrial assets become even greater.” 

GIC is expecting the industrial and logistics asset class to outperform other real estate and infrastructure asset classes in the medium term. 

Abhijit Malkani, chief executive of ESR India said: “India is at the cusp of a supply chain transformation supported by automation, digitisation, and favourable government policies.”

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Formerly known as ESR Cayman, ESR Group’s first partnership with GIC in India took place in late 2020, through another 80:20 strategic partnership to establish a US$750 million joint venture for similar purposes.