Asia Pacific-focused logistics developer e-Shang Redwood (ESR) has kicked off its first project in India, an industrial and logistics park in Chakan MIDC (Maharashtra Industrial Development Corporation), Pune.
The firm will invest over Rs 350 crore in the project.
ESR CHAKAN 1, the 1.2 million sq ft logistics park, will offer both build-to-suit (BTS) solutions and standardized facilities.
“India’s industrial and logistics real estate market is flourishing, thanks to the continued growth of e-commerce and consumption, as well as robust industrial demand. Over the last 18 months, ESR has made great strides in introducing global best practice and institutional-grade facilities to the market,” said ESR India co-CEO Abhijit Malkani.
Warburg Pincus-backed ESR is one of Asia’s largest developers and operators in logistics and warehousing and was formed by the merger of e-Shang Cayman Ltd and Redwood Group Asia Pte. Ltd in 2016.
Based out of Hong Kong and Singapore, it owns and manages around 7.3 million sq.m. of assets in China, Japan, Singapore and South Korea.
“ESR CHAKAN 1 represents a new milestone in addressing pent-up customer demand for worldclass industrial and logistics capabilities in India,” said Jai Mirpuri, co-CEO, ESR India.
The warehousing and logistics sector, which attracted investments of more than a billion dollars in 2017, is witnessing huge interest in building businesses around steady rental income. Apart from Canada’s Brookfield Asset Management Inc. which is planning to enter the industrial real estate space, Sydney’s LOGOS Group and Assetz Property Group from Singapore partnered in 2017 and is scouting for land. Embassy Industrial Parks Pvt. Ltd, Ascendas-Singbridge Group and Mahindra Lifespace Developers Ltd also plan to build industrial parks and clusters.
Stuart Gibson, co-CEO and co-founder of ESR said: “We are excited with the acceleration of ESR’s development activities in India with this project in such a prime location in Pune. Having already established leadership positions across the Asia Pacific 2 region, we are well placed to partner with global customers including many of our existing clients to capitalize on the immense growth opportunities available in the Indian market.”