Private equity giant Blackstone, which operates in India’s logistics market via Horizon Industrial Parks, has entered into an agreement with government-run undertaking, the Central Warehousing Corporation, to develop and modernise a portfolio of warehousing assets across the country.
According to a post on social networking platform X, CWC has partnered with Horizon Industrial Parks under the public-private partnership model to develop Grade A warehouses across 13 locations in India including Delhi National Capital Region, Chennai, Mumbai, Pune and Bengaluru.
The cumulative development potential of this logistics partnership is about 2.4 million square feet or about 70 acres, with an investment potential of over Rs 700 crore, the CWC said. Blackstone’s Horizontal Industrial Parks will be in a 45-year contract to design, build, finance, and operate the facilities. The redevelopment process, however, will be completed within five years of the appointment.
Overall, CWC earmarked warehousing properties across more than 50 locations for modernisation and development under the PPP model, spread across an area of about 83 acres, with a total investment potential of about Rs 782 crores across 16 properties.
The contract for the redevelopment of the other three properties in Raipur, Ambattur (Chennai) and Indore were awarded to RSA Warehousing, TransAsia Shipping and LL Logistics, according to an official statement. These have a total development potential of about 500,000 square feet and with a cumulative development cost of Rs 82 crore.
Real estate advisory firm Knight Frank assisted CWC in the transaction.
“The primary goal of CWC is to facilitate the development of warehousing and logistics spaces in India, which will reduce costs while ensuring the quality of goods. Involving the private sector in the modernisation of warehousing will accelerate the development process and contribute to the country's overall economic growth," said Amit Kumar Singh, managing director, Central Warehousing Corporation.
Horizon Industrial Parks, owned and managed by Blackstone Real Estate Funds, was launched in January 2022 as a measure to support the private equity giant’s India logistics business expansion.
The portfolio includes marquee investments from developers including Embassy Industrial Parks, TARC and Allcargo Logistics.