 "GIC, ESR Group set up $600 mn India JV to buy industrial, logistics assets")
BENGALURU (Reuters) - Singapore's sovereign wealth fund GIC and real estate investment manager ESR Group have partnered to set up a $600 million joint venture to buy profit-making industrial and logistics assets in India, they said on Thursday.
The new JV, in which GIC is an 80% owner, is an extension of an existing partnership between the entities in the country. It will invest in "stabilised operational assets" in tier 1 and tier 2 cities of the country.
A host of Indian corporations, including logistics firm Blue Dart Express and staffing solutions provider Quess have been expanding in metros as well as smaller cities to tap into the demand for online shopping from the country's growing middle class.
GIC and ESR expect industrial and logistics assets to outperform other real estate and infrastructure assets in the medium term on the back of a surge in online shopping as well as store purchases.
"India is at the cusp of a supply chain transformation supported by automation, digitisation, and favourable government policies," ESR India Chief Executive Officer Abhijit Malkani said in a statement.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Dhanya Ann Thoppil)