Blackstone Group, a private equity giant, is investing INR 380 crore to buy a majority stake in Mumbai-based Allcargo Logistics Ltd for developing logistics parks in key consumption hubs across India. According to a statement issued by Allcargo, Blackstone aims to make the investment through equity and debt.
“Allcargo will retain a minority stake in the various logistics assets and transfer its debt as it relates to these specific assets to their relevant subsidiaries,” the statement said. “The transaction is expected to conclude in a phased manner over the next 12 months.”
This partnership will also aid to Allcargo’s growing third-party logistics business.
About 80% of the company’s warehousing portfolio is pre-leased while 1.5 million sq. ft is already income-producing.
Allcargo provides a wide range of services comprising of global multimodal transport operations, inland container depots, warehousing and logistics parks.
“The 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,” said Shetty, the chairman of Allcargo Logistics.
In December, Allcargo entered the express logistics space by announcing the company’s purchase of controlling stake in Gati for around INR 416 crore.
Gati has a strong customer base across corporate India as well as small and medium enterprises. It has a service network catering to 19,000 PIN codes and 727 districts across the country.
For Blackstone, the investment would help the New York-based investment firm expand its footprint into logistics sector in India.
According to report, Blackstone has invested $3.6 billion in India, its record for a single year in the country. So far, the total investments of the company in the country across private equities and real estate deals are more than $13 billion.