Global investment firm Blackstone on Monday said funds managed by Blackstone Real Estate have acquired Embassy Industrial Parks from Warburg Pincus and Embassy Group. Blackstone called it one of India's largest logistics transactions, but didn't disclose the deal value.
"Embassy Industrial Parks comprises 10.6 million square feet of modern Grade A logistics and warehousing assets near urban centres, tailored for tenants in rapidly developing sectors," the investment firm said in a statement. The 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.
In 2015, the Bengaluru-based Embassy Group had formed a joint venture with private equity firm Warburg Pincus to build industrial parks. Warburg Pincus had a 70 per cent stake in the joint venture -- Embassy Industrial Parks, while the Embassy Group had a 30 per cent stake.
"Blackstone is among the top 10 business groups in India by the total value of assets and the transaction will help reinforce the firm's leading position in the office, retail, and logistics," the statement said.
Logistics is one of the highest global conviction themes of the firm, anchored by the belief that e-commerce trends will further fuel demand for logistics space, especially near city centres, 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 urbanisation, domestic consumption, and the emerging retail sector, which remains heavily underpenetrated compared to major economies around the world."
Tuhin Parikh, Blackstone's real estate head, said the firm is committed to growing its presence in India and has been partnering with local developers and governments to transform assets and businesses for the past 16 years.
It has also successfully launched the country's first two REITs, Parikh added.
Blackstone's real estate business was founded in 1991 and has $196 billion of investor capital under management. Blackstone is one of the largest property owners in the world, owning and operating assets across every major geography and sector, including logistics, multifamily and single family housing, office, hospitality and retail.