Blackstone Real Estate managed funds have acquired Embassy Industrial Parks from Warburg Pincus and Embassy Group for an enterprise value of $700 million.
Embassy Industrial Parks comprises 10.6 million square feet of modern Grade A logistics and warehousing assets near urban centers, tailored for tenants in rapidly developing sectors.
Embassy Industrial Parks’ warehouses are located across major industrial hubs in India including Bangalore, Delhi NCR, Hyderabad, and Pune, and are leased to leading e-commerce and retail players.
”We are excited to announce this acquisition of a best-in-class logistics portfolio from Embassy Industrial Parks. Logistics is one of the firm’s highest global conviction themes, anchored by our belief that e-commerce trends will further fuel demand for logistics space especially near city centers,” said Asheesh Mohta, Head of Blackstone’s Real Estate India Acquisitions.
”This is particularly true in India, where e-commerce is in its nascent stage of development and has tremendous opportunities driven by positive trends in urbanization, domestic consumption, and the emerging retail sector, which remains heavily underpenetrated compared to major economies around the world. For instance, Bangalore, the e-commerce hub, only has 30 million square feet of total Grade A and B warehouse space compared to 1.2 billion square feet in Chicago,” he added.
“We are committed to growing our presence in India. For the past 16 years, we’ve been partnering with local developers and governments to transform assets and businesses, and help communities prosper. We’ve successfully launched the country’s first two REITs, with the very first Embassy Office Parks REIT marking its second-year anniversary this month, and recently announced the acquisition of a portfolio of commercial properties,” said Tuhin Parikh, Blackstone’s Head of Real Estate India.
“The partnership with Warburg Pincus has been extremely valuable to us and they will remain our trusted partners. This transaction between Embassy Group and Blackstone further strengthens and reinforces our partnership. We are extremely focused on consolidating our resources towards the growth of our core businesses of office and residential development and management. This transaction with Blackstone Real Estate along with the upcoming merger with IBREL is a strategic move in that direction,” said Jitu Virwani, Chairman and Managing Director of Embassy Group.