Canadian investment firm Brookfield has acquired a 10.5 million sq ft industrial and logistics real estate portfolio from ESR India for Rs 4,300 crore, marking its entry into India’s logistics real estate market.
The transaction covers the acquisition and future development of the portfolio, while ESR will continue to manage the properties in the near term.
Spread across nearly 400 acres in six metropolitan clusters, the portfolio comprises eight Grade A industrial and logistics parks in major gateway markets including Mumbai, Pune, Delhi NCR, Chennai and Kolkata.
The operating portfolio is approximately 98% leased and serves a diversified base of logistics and industrial occupiers. The properties include warehouses, fulfilment centres and facilities used for light manufacturing.
Sector experts said the acquisition makes Brookfield the third-largest logistics real estate player in India by portfolio size, after Indospace and Blackstone-backed Horizon Industrial Parks.
Blackstone, GIC, Prologis and Indospace were also reported to have bid for the ESR India portfolio, with Brookfield emerging as the highest bidder.
Brookfield Expands India Real Estate Platform
The acquisition adds logistics infrastructure to Brookfield’s existing Indian real estate portfolio, which spans office and hospitality assets and includes Brookfield India Real Estate Trust and The Leela Palaces Hotels and Resorts.
Brookfield currently has more than $13 billion invested across its office and hospitality real estate portfolio in India. Across infrastructure, energy, private equity, real estate and credit, the company manages approximately $33 billion in assets in the country.
Ankur Gupta, deputy chief investment officer and head of Asia Pacific and Middle East, real estate at Brookfield, said, “We remain well-positioned to partner with governments, global institutions and corporations to deliver solutions at scale, strengthening supply chains, enhancing connectivity, providing accommodation solutions for industrial workforce and supporting the country’s economic ambitions.”
The transaction also expands Brookfield’s exposure to India’s industrial and logistics infrastructure at a time when demand for warehousing and distribution facilities is being supported by manufacturing, e-commerce and supply-chain activity.
ESR to Continue Managing Portfolio
ESR will retain the management mandate for the properties in the near term, providing continuity for existing occupiers following the ownership transition.
Abhijit Malkanim, India CEO at ESR, said, “Brookfield’s acquisition of the portfolio underscores the value created through ESR’s integrated platform and the strength of our logistics business in India. ESR will continue to manage the portfolio, providing continuity for customers while supporting its next phase of growth.”
The transaction follows Brookfield’s recent expansion into other segments of India’s energy and infrastructure market. On July 30, the company announced the launch of Lumara, a renewable energy platform expected to deploy nearly $600 million in the country. Brookfield has also invested a similar amount in ACME’s green molecule projects.
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