GIC, Warburg-backed ESR form $750 mn India warehousing JV

Singapore sovereign wealth fund GIC Pte Ltd and ESR Cayman Ltd said Tuesday they have formed a joint venture to develop and acquire industrial and logistics assets in India.

GIC will hold an 80% stake in the JV and ESR, an Asia Pacific-focused logistics real estate platform backed by private equity firm Warburg Pincus, will own 20%.

The JV will have a capital pool of $750 million, the two firms said in a statement.

The JV will develop and acquire industrial and logistics facilities in Tier 1 and Tier 2 cities across India. It will be seeded with a 2.2 million sq ft build-to-core asset around Mumbai and Thane.

“GIC has been investing in India for more than a decade and this investment is a testament to our confidence in the long-term potential of this market,” said Lee Kok Sun, chief investment officer, real estate, GIC.

Kishore Gotety, co-head (Asia ex-China), real estate, GIC, said that e-commerce growth in India over the long term and rising internet penetration is likely to drive strong demand for industrial and logistics assets.

“This is further supported by the emphasis on infrastructure development, changing supply chains, and low vacancy levels. This Joint Venture is well-positioned to benefit from these tailwinds, bring institutional-grade assets into this market, and generate resilient returns,” he said.