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esr: ESR Group forays into Odisha with Rs 360-cr investment


Asia Pacific-focused real estate services and investment major ESR Group is planning to develop a logistic park spread over 1.2 million sq ft in Odisha’s Cuttack and has acquired 57 acres of land for the same.

The Hong Kong Stock Exchange-listed company is planning to invest Rs 360 crore for the construction and development of the warehousing hub, ESR Cuttack Logistics Park, which will be the region’s only institutional-grade facility with grade-A specifications.

The development marks ESR’s foray into Odisha to fortify its position in the eastern region following its first asset in Kolkata, ESR Uluberia Logistics Park.

“ESR Cuttack Logistics Park assumes a pivotal role in reshaping the next phase of expansion for ecommerce, retail and 3PL customers. The steadfast growth of online and retail consumers in Odisha has motivated us to expand in the region and offer a best-in-class facility integrated with green building features,” said Abhijit Malkani, CEO of ESR India.
According to him, ESR Cuttack Logistics Park will transform the warehousing scenario in the micro market, and meet the evolving demands of businesses for seamless supply chain efficiency.The land for the ESR Cuttack Logistics Park has been acquired with one operational building, which is now fully leased and occupied by one of India’s largest ecommerce companies.The company is in the process of completing the construction of the second building. The entire park is projected to accommodate six buildings and will cater to expansion of India’s ecommerce and retail brands.Located within the thriving warehousing hub of North Cuttack, ESR’s new logistics park both harnesses and supports the region’s rapid economic growth. As essential trading centres, the twin cities of Cuttack and Bhubaneswar are driving Odisha’s economic expansion with their wealth of resources and thriving sectors like IT/ITES and manufacturing.

Warehousing demand is mainly driven by third-party logistics (3PLs), ecommerce, retail, consumer goods, durables, paints, chemicals, automobiles and ancillaries.

This park will be integrated with the ESR smart mobile app to improve client experiences and enable digital park management. It will be certified by Indian Green Building Council (IGBC) and integrate energy and water-efficient designs to reduce environmental impact and operating costs for clients.

As of June end, ESR has a development work-in-progress of $13 billion, the largest development workbook in the Asia Pacific region. In the first half of 2023, the group achieved a record $3.8 billion of development starts as well as delivered $2.2 billion in completions.

ESR India, part of the ESR Group, is a leading developer and manager of industrial and logistics real estate with assets under management (AUM) of around $1.6 billion and 2.4 million sq meter of gross floor area as of June end.

Recently, ESR Group entered into a strategic partnership with Singapore’s sovereign wealth fund GIC to set up a $600 million (around Rs 5,000 crore) joint venture to acquire income-producing core industrial and logistics assets in India.

The sovereign fund will be holding 80% equity in the joint venture, while ESR will control 20% equity. This alliance is an extension of the existing partnership in India between the two, which was initiated in 2020.

With the new arrangement, the capital pool available to invest in development and core logistics and industrial opportunities across the country stands over $1 billion.

With an upsurge in the share of organised retail and ecommerce, supported by emerging sectors such as electric vehicles and semiconductors, the industrial and logistics asset class is expected to outperform other real estate and infrastructure asset classes in the medium term.

The warehousing and logistics segment of real estate, which has emerged as relatively immune to the shocks of Covid-19, is expected to gain further strength, and attract more investment in the next couple of years.

In India, a favourable regulatory environment, along with the government’s support through policy and reforms, has started to boost spending in infrastructure and in turn the overall demand for modern warehousing.


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