Blackstone will invest up to INR 380 cr in AllCargo Logistics to develop industrial and logistics parks across India. The transaction is expected to conclude in a phase-wise manner over the next 12 months, subject to satisfaction of customary closing conditions and achievement of certain milestones, as per their official press release.
Blackstone proposes to make its investment in the platform, by way of debt and equity while AllCargo is expected to retain minority stake in the various logistics assets and transfer its debt as it relates to these specific assets to their relevant subsidiaries.
“Indian warehousing sector is scaling an expansionary curve backed by a robust regulatory environment and government thrust in boosting manufacturing, e-commerce and organized retail. This sector has emerged as an attractive investment destination for global investors. Through this strategic tie-up, we reiterate our commitment and positioning to create a global benchmark in warehousing infrastructure and provide state-of-the-art warehousing solutions to our customers”.Shashi Kiran Shetty, Chairman, AllCargo Logistics Ltd.
AllCargo has completed ongoing projects in the advanced stage of development for 6 million square feet of Grade A logistics parks across the National Capital Region (NCR) Delhi, Bengaluru, Hyderabad, Ahmedabad, Pune, JNPT in MMR (Mumbai), Hosur and Goa.
About 80% of the company’s warehousing portfolio is pre-leased, of which, close to 1.5 million square feet is already income producing. The company further has projects in the planning stage for another 3 million square feet.
This partnership will help AllCargo’s growing 3PL (third party logistics) business and enable MNCs and Indian companies to access its world-class warehousing assets.