Private equity firm Blackstone will make an investment of Rs 380 crore in Allcargo Logistics to develop industrial and logistics parks across India.
Blackstone’s investment in the platform will be through debt and equity. Allcargo Logistics will retain a minority stake in various logistics assets and transfer its debt as it relates to these specific assets to their relevant subsidiaries.
The transaction is expected to conclude in a phased manner over the next 12 months, subject to satisfaction of customary closing conditions and achievement of certain milestones.
Allcargo Logistics has completed and ongoing projects in advanced stage of developments for six million sq ft of Grade A logistics parks across the National Capital Region (NCR) Delhi, Bengaluru, Hyderabad, Ahmedabad, Pune, Jawaharlal Nehru Port Trust (JNPT) in MMR (Mumbai), Hosur and Goa.
Around 80% of the company’s warehousing portfolio is pre-leased of which close to 1.5 million sq-ft is already income producing. The company further has projects in the planning stage for another three million sq-ft.
This partnership will help Allcargo Logistics in growing third party logistics business and enable MNCs and Indian companies access to its warehousing assets.