Blackstone, a private equity firm plans to invest around Rs 380 crore (US$ 54.37 million) in Allcargo Logistics in order to develop industrial and logistics parks across India.
According to Allcargo, the investment by Blackstone in the platform will be done through debt and equity.
Minority stakes will be held by Allcargo in various logistics assets and it will transfer its debt as it relates to these specific assets to their relevant subsidiaries, it said.
This transaction is expected to be done in a phase wise manner over the next 12 months, subject to satisfaction of customary closing conditions and achievement of certain milestones.
“The Indian warehousing sector is scaling an expansionary curve backed by a robust regulatory environment and government thrust in boosting manufacturing, e-commerce and organised retail. This sector has emerged as an attractive investment destination for global investors. Through this strategic tie-up, we reiterate our commitment and positioning to create a global benchmark in warehousing infrastructure and provide state-of-the-art warehousing solutions to our customers,” Mr Shashi Kiran Shetty, Chairman, Allcargo Logistics Ltd, said.
Allcargo portfolio include the projects completed and also ongoing ones in the advanced stage of developments for 6 million square feet of Grade A logistics parks across the National Capital Region (NCR) Delhi, Bengaluru, Hyderabad, Ahmedabad, Pune, JNPT in MMR (Mumbai), Hosur and Goa. The company’s warehousing portfolio of around 80 per cent is pre-leased of which about 1.5 million square feet is already income producing. The company also has projects in the planning stage for another 3 million square feet.
This partnership will aid Allcargo’s growing 3 PL (third party logistics) business and support MNCs and Indian companies access to its world-class warehousing assets.