Logistics growth platform ESR has acquired around 8 acres of land in Delhi from real estate firm to increase its operations in the town. The in-city warehouse has a growth potential of around 4 lakh sq ft and is positioned in Alipur, Delhi-NCR. “TARC wants to completely focus on the upper mid-income and luxury home segments and will cash out non-core businesses,” stated an individual conscious of the deal.
This is the second warehouse asset sale by the real estate firm TARC. Last 12 months, it offered a warehousing asset in North Delhi to BREP Asia II EIP Holding (NQ) Pte Ltd for Rs 295 crore. Tarc has been offloading non-core belongings, together with warehousing and retail belongings, and is in talks with international funds to dump extra retail and warehousing belongings.
“The residential market has been performing exceptionally well, and sales have reached an almost 2014 level. TARC wants to fast track the residential projects and reduce debt, ” stated one other particular person conscious of the plans.
The Indian warehousing section has attracted giant institutional buyers, allocating contemporary capital to the warehousing section as demand continues to be robust from e-commerce and logistic corporations and easing of insurance policies, together with the GST reform.
“These sites are well-suited for the mid-mile logistics requirements of large e-commerce tenants. ESR is looking to expand its in-city distribution centers, which are in high demand.The firm is looking to buy both greenfield and brownfield properties not exceeding 15 acres of land area,” stated another particular person quoted above.
The industrial and logistics real estate platform is trying to step up land acquisitions additional to increase its portfolio, in addition to construct in-city distribution facilities, prompted by excessive demand from e-commerce and retail corporations.ESR has closed two land acquisitions in Gujarat and Chennai. In India, it’s at present current in 9 cities with 16 operational websites and a complete gross flooring space (GFA) of about 18 million sq ft.