GIC and ESR Cayman to invest $1b in Indian assets

Singapore sovereign wealth fund GIC and ESR Cayman have set up a US$750 million (S$1 billion) joint venture to develop and acquire industrial and logistics assets in India.

The firms said yesterday the joint venture will develop and own "state-of-the-art" facilities as well as acquire core assets, focusing on Tier 1 and Tier 2 cities in India.

GIC will account for 80 per cent of the partnership and ESR the rest.

"GIC has been investing in India for more than a decade, and this investment is testament to our confidence in the long-term potential of this market," said Mr Lee Kok Sun, GIC's chief investment officer of real estate.

Both parties said the industrial and logistics segment has emerged as a key growth driver of India's real estate industry.

They noted that e-commerce expansion, increasing infrastructure investment, supply chain modernisation and favourable government policies will keep driving growth in the sector.

Hong Kong-listed ESR Cayman is an Asia-Pacific-focused logistics real estate platform. The fair value of the properties directly held by ESR Cayman and the assets under management was around US$26.5 billion as at June 30.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on December 23, 2020, with the headline 'GIC and ESR Cayman to invest $1b in Indian assets'. Subscribe