GIC And ESR Establish A US $600 Million Joint Venture To Invest In Core Income-Earning Industrial And Logistics Assets In India
The new Core JV provides focused capital for investments into core industrial and logistics assets in India
SINGAPORE/MUMBAI/HONG KONG, X September 2022 – GIC, Singapore's sovereign wealth fund, and ESR Group Limited ("ESR"; SEHK Stock Code: 1821) announced today an 80:20 strategic partnership to establish a US$600 million joint venture ("Core JV") to acquire income-earning core Industrial and Logistics assets in India
It is an extension of the existing partnership in India between the two, initiated in 2020, with the initial capital pool dedicated to investing in development and value-add opportunities across India. The new Core JV provides focused capital dedicated to enabling the inorganic growth of the platform and will invest in stabilised operational assets in strategic locations across Tier 1 and Tier 2 cities of the country. Investments in enabling sustainable infrastructure are critical to the country's development. With an upsurge in the share of organised retail and e-commerce, supported by emerging sectors such as electric vehicles and semiconductors, the industrial and logistics asset class is expected to continue to outperform other real estate/infrastructure asset classes in the medium term.
Jeffrey Shen and Stuart Gibson, ESR Co-founders and Co-CEOs said: "Capital partner support has been key to the growth of ESR's new economy real estate platform. We are excited to partner with GIC to capitalise on the strong growth in the logistics sector in India. As APAC's largest real estate asset manager, ESR's integrated fund management platform has provided our capital partners with access to some of the world's best secular growth opportunities propelled by the positive trends of e-commerce and digital transformation. These trends open new investment opportunities to ESR
and our capital partners as the demand for advanced, large-scale, well-located logistics assets becomes even greater."
Abhijit Malkani, CEO of ESR India, stated: 'India is at the cusp of a supply chain transformation supported by automation, digitisation, and favourable government policies. Class-A industrial and logistics developments offer a variety of features to enable increased operational efficiency, which is vital to this shift. With the Core JV platform, we will look forward to refurbishing and upgrading the assets as required, as well as adding sustainability elements to ensure that we can offer the same product quality to our customers as we do for products that we develop ourselves.'
ESR India, part of the ESR Group, is a leading developer and manager of industrial and logistics real estate with assets under management of approximately US$1.8 billion and over 18 million sq. ft. of GFA.
GIC is a leading global investment firm established in 1981 to manage Singapore’s foreign reserves. As a disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including equities, fixed income, private equity, real estate and infrastructure. Headquartered in Singapore, GIC has investments in over 40 countries and employs over 1,700 people across 10 offices in key financial cities worldwide. For more information on GIC, please visit www.gic.com.sg or LinkedIn.
ESR is APAC’s largest real asset manager powered by the New Economy and the third largest listed real estate investment manager globally. With US$140.2 billion in total assets under management (AUM), our fully integrated development and investment management platform extends across key APAC markets, including China, Japan, South Korea, Australia, Singapore, India, New Zealand, and Southeast Asia, representing over 95% of GDP in APAC, and includes an expanding presence in Europe and the U.S. We provide a diverse range of real asset investment solutions and New Economy real estate development opportunities across our private funds business, which allow capital partners and customers to capitalize on the most significant secular trends in APAC. ESR is the largest sponsor and manager of REITs in APAC with a total AUM of US$45 billion. Our purpose – Space and Investment Solutions for a Sustainable Future – drives us to manage sustainably and impactfully and we consider the environment and the communities in which we operate as key stakeholders of our business. Listed on the Main Board of The Stock Exchange of Hong Kong, ESR is a constituent of the FTSE Global Equity Index Series (Large Cap), Hang Seng Composite Index and MSCI Hong Kong Index. More information is available at www.esr.com and www.in.esr.com.