E-Shang Redwood (ESR), a venture between Chinese warehouse developer e-Shang Cayman Ltd and Singaporean real estate developer Redwood Group Asia, Pte. Ltd, and Allianz Real Estate (RE), a German real estate unit of asset manager and insurer Allianz Group, partnered to invest around $1 billion in India’s logistics and industrial property market.
The proposed investment programme will start with an immediate equity commitment of $225 million, to be funded on a 50:50 basis by Allianz and ESR.
With the strategic partnership, the joint venture (JV) will focus on developing large-scale logistics and industrial facilities in eight key cities, including Mumbai, Pune, Chennai, Delhi, Ahmedabad, Kolkata, Bengaluru and Hyderabad.
The investment plan will enhance opportunities to acquire assets in these cities with JV's strategy to leverage structural trends in tier one and selective tier two cities to build a long-term, cash flow positive logistics portfolio by acquiring a blend of develop-to-core, forward purchases and stabilised or stabilising assets.