ESR buys 58 acre land in Nagpur for logistic park, to invest Rs 400 crore

ESR Group on Tuesday said it has acquired 58 acre of land in Nagpur to build a logistic park and will invest Rs 400 crore in the construction and development.

ESR Group, in a statement, said that it has acquired 58 acre of land in Nagpur with a total development potential of 1.4 million square feet.

"ESR has also committed to invest Rs 400 crore (USD 48 million) for the construction and development of ESR Nagpur Logistics Park 2, which will be the company's second logistics park in Nagpur and its twentieth park across the country," it added.

With the successful land acquisition, ESR Nagpur Logistics Park- 2 will help boost the supply of modern Grade A logistics facilities within the Gondkhairi-Kalmeshwar logistics cluster.

The park is designed to accommodate 10 buildings, with building sizes ranging from 67,000 sq ft to 1,90,000 sq ft to meet a broad spectrum of tenant needs, ranging from e-commerce to third-party logistics (3PL), retail and fast-moving consumer goods (FMCG).

Abhijit Malkani, CEO of ESR India, said, "ESR's investment in this new Grade A asset builds upon the remarkable success of our first logistics park in Nagpur. Our flagship 22.5-acre development, ESR Nagpur Logistics Park 1, has been operating at full occupancy since completion in 2020, having attracted high-profile tenants from retail and e-commerce domains".

"We are building another best-in-class logistics facility that will redefine warehousing standards in the region and cater to the diverse expansion needs of e-commerce, retail, and 3PL services. Our work is focussed on driving long-term sustainable growth of the economy and uplifting local communities," he added.

As of June 30, 2023, ESR has a development work-in-progress of USD 13 billion.

In the first half of 2023, the group achieved a record USD 3.8 billion in development starts and delivered USD 2.2 billion in completions.

In India, ESR has a total assets under management (AUM) of approximately USD 1.6 billion.

ESR said it is APAC's largest real asset manager powered by the New Economy and the third largest listed real estate investment manager globally.

With about USD 150 billion in total AUM, its 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, and also includes an expanding presence in Europe and the US, the statement said.

ESR is the largest sponsor and manager of REITs in APAC with a total AUM of about USD 45 billion.