Tuesday, June 25, 2024
HomeReal EstateESR buys around 8 acres of land in Delhi

ESR buys around 8 acres of land in Delhi

To expand its operations in Delhi, logistics development platform ESR has purchased approximately 8 acres of land from real estate firm TARC. The in-city warehouse at Alipur, Delhi-NCR, has a growth potential of around 4 lakh sq ft.

“TARC wants to completely focus on the upper mid-income and luxury home segments and will cash out non-core businesses,” said a person aware of the deal.

The real estate firm TARC has sold its second warehouse asset. Last year, it sold a warehouse asset in North Delhi for Rs 295 crore to BREP Asia II EIP Holding (NQ) Pte Ltd. 

Tarc has been selling non-core assets such as warehousing and retail and is negotiating with global firms to sell even more retail and warehousing assets.

“The residential market has been performing exceptionally well, and sales have reached an almost 2014 level. TARC wants to fast track the residential projects and reduce debt, ” said another person aware of the plans.

Large institutional investors have flocked to the Indian warehousing sector, allocating new capital as demand from e-commerce and logistics enterprises remains robust, and laws, such as the GST reform, have been eased.

“These sites are well-suited for the mid-mile logistics requirements of large e-commerce tenants. ESR is looking to expand its in-city distribution centers, which are in high demand. The firm is looking to buy both greenfield and brownfield properties not exceeding 15 acres of land area,” said one more person quoted above.

Due to increased demand from e-commerce and retail enterprises, the industrial and logistics real estate platform wants to increase land acquisitions and create in-city distribution centers to extend its portfolio. 

Last year, ESR completed two land acquisitions in Gujarat and Chennai. It currently has 16 active sites in India, with a total gross floor area (GFA) of approximately 18 million sq ft.

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