ESR Strengthens Strategic Presence In Chennai, India With An Additional 27-acre Land Acquisition In Oragadam

ESR Oragadam Industrial & Logistics Park is strategically sited in the heart of the Oragadam-Sriperumbudur cluster, which has witnessed a robust growth in demand for Grade A assets

MUMBAI, 18 June 2024 – ESR Group Limited (“ESR” or the “Company”, together with its subsidiaries, the “Group”; SEHK Stock Code: 1821), Asia-Pacific's leading New Economy real asset manager, has acquired a further 27 acres (circa 110,000 square metres ("sqm")) of land to expand its industrial and logistics park in Oragadam. The enlarged area of ESR Oragadam Industrial & Logistics Park (“ESR Oragadam”) now spans 107 acres (over 430,000 sqm), with a development potential of 2.5 million square feet (circa 233,000 sqm). The additional ₹276 crore (over US$33 million) investment signifies ESR's dedication to bolstering Tamil Nadu's industrial landscape.

This latest expansion builds upon the success of ESR Oragadam’s first two phases, which have welcomed many high-quality customers, such as electromechanical solutions provider CUBIC, automotive research and development firm A2Mac1, and specialty labelling company CCL.

ESR’s additional investment will provide the opportunity for other major customers to establish their operations in the highly coveted Oragadam-Sriperumbudur precinct, which has witnessed robust demand for Grade A industrial buildings in the past two years. In addition, sizeable contiguous land parcels are scarce in Oragadam, making ESR's industrial and logistics park highly valuable.

Abhijit Malkani, CEO of ESR India, said, “ESR's expansion in Oragadam is a pivotal step in our support for Tamil Nadu's commitment to becoming a major industrial hub. This project transcends Grade A industrial buildings. By upgrading the supply chain with modern infrastructure, we are empowering a new era of advanced manufacturing and logistics for customers and communities. We are crafting an ecosystem that prioritises innovation and environmental responsibility. Integrating green building practices and sustainable infrastructure into our design enables businesses to operate efficiently while minimising their environmental impact. This expansion positions ESR as a contributor to Tamil Nadu's industrial transformation, and we are excited to be part of this remarkable journey to drive space and investment solutions for a sustainable future."

ESR Oragadam is strategically located along State Highway 48, offering customers exceptional multimodal connectivity by air, road, rail, and sea, as well as access to three major ports aiding international trade. The park is an ideal destination for industrial expansion, as Tamil Nadu boasts the second-largest industrial base in the country with Oragadam being a leading manufacturing destination for automobile, auto ancillary, defence, electronics, renewable energy, and aerospace. This well-developed hub caters to a diverse range of customers, such as Daimler, Royal Enfield, Apollo Tyres and Komatsu, alongside leading manufacturers in electronics and engineering.

The project's commitment to sustainability with IGBC platinum pre-certification and best-in-class infrastructure further underscores ESR’s focus on creating a future-proof industrial ecosystem for international players to expand in Tamil Nadu.