Indospace and ESR India in race to acquire Embassy Industrial Parks

August 18, 2020: Logistics real estate platforms Indospace and ESR India has emerged to be in a race to acquire Embassy Industrial Parks.

“Backed by PE fund Everstone Capital and CPPIB, Indospace signed an exclusivity agreement last week and engaged in exclusive talks for acquiring the assets at an enterprise value of Rs 1,800 crore, said two people aware of the developments,” reports The Economic Times.

Private equity fund Warburg Pincus owns 70 percent stake in Embassy Industrial Parks while Bengaluru-based Embassy Group owns the remaining 30 percent. With a total portfolio of 15 million sq ft, Embassy Industrial Parks is developing warehousing projects at Chakan in Pune, Hosur in Bengaluru, Farrukhnagar and Bilaspur in Delhi-NCR, Kothur in Hyderabad and Sriperumbudur in Tamil Nadu.

In a recent report, Colliers International noted that Covid-19 induced e-commerce demand and US-China trade war triggered rebalancing of the supply chain will attract more investments into the Indian warehousing sector in next 2-3 years and is expected to bounce back quickly, even though funds will be muted for at least one year.

Earlier this month, ESR India had acquired a 39-acre land in the Oragadam suburb of Chennai for Rs 332 crore in order to develop an industrial park. Located on SH-48, close to Oragadam junction, the park would be connected by air, road, rail and ports.

Bhiwandi, the warehouse hub and suburb of Mumbai with hundreds of godowns of online retailers like Flipkart, Amazon, Reliance Retail and Jiomart, has become the new job hub as e-retailers opened new roles and people are not able to travel tohttps://www.itln.in/mumbais-warehouse-hub-bhiwandi-also-becomes-the-new-job-hub-supply-chain the city from the suburbs.