CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Blackstone boosts India warehouse portfolio with $40m buy

By Munikoti Rochan

09:34, 7 September 2021

Blackstone is buying up warehouses in India
A warehouse in India - Photo: Shutterstock

India’s biggest warehouse landlord, the Blackstone Group, has boosted its logistics portfolio in the country through an acquisition. The private equity giant has purchased more warehousing space, this time from New Delhi-based realty firm TARC.

A Blackstone-managed fund, the Blackstone Real Estate Partners (BREP) Asia II EIP Holding (NQ), has bought warehousing assets in north Delhi from TARC for INR2.95bn (USD40.1m).

The deal is in line with making TARC a debt-free company and will help it develop its huge land bank, TARC chief executive officer Amar Sarin said in a 6 September regulatory filing.

“TARC’s mantra of creating a high quality asset base, while leading with integrity and transparency, has been rewarded with the confidence and trust placed in TARC by Blackstone,” Sarin added. The firm has a market capitalisation of around INR11.74bn on the National Stock Exchange (NSE).

Warehousing boom

Property consultant Knight Frank India has projected that warehousing transactions in the top eight Indian cities will grow at a compound annual growth rate (CAGR) of 19% to 76.2 million square feet (MSFT) in fiscal 2025/2026, from 31.7 MSFT in the financial year ended March 2021.

BTC/USD

38,776.20 Price
+2.420% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Gold

2,068.18 Price
+1.610% 1D Chg, %
Long position overnight fee -0.0195%
Short position overnight fee 0.0113%
Overnight fee time 22:00 (UTC)
Spread 0.30

XRP/USD

0.62 Price
+0.670% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

US100

15,986.40 Price
+0.410% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

The e-commerce sector will drive the bulk of the volume, with the accelerated growth trajectory that the COVID pandemic pushed the sector towards expected to sustain, the consultancy wrote in its India Warehousing Market Report 2021.

Logistics portfolio

Logistics is one of Blackstone’s core investment themes globally. In May, Blackstone Real Estate executed one of India’s largest logistics transactions, acquiring Embassy Industrial Parks from private equity major Warburg Pincus and Bengaluru-based builder Embassy Group.

Embassy Industrial Parks comprises 10.6 MSFT of logistics and warehousing assets in Bengaluru, the Delhi national capital region, Hyderabad and Pune, leased to leading e-commerce and retail players, as per a 10 May media statement.

The potential for growth in the logistics space across the sub-continent is huge and Blackstone is buying up warehouses to cater to the growing retail industry there. For instance, the Bengaluru e-commerce hub has just 30 MSFT of total Grade A and B warehouse space compared to 1.2 billion square feet in Chicago, according to the head of Blackstone’s Real Estate India Acquisitions arm Asheesh Mohta.

Read more: Blackstone offers to buy SOHO China for .05 billion

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading