In one of the largest logistics deals in the country in recent years, US-based private equity fund manager Blackstone Group has bought Embassy Industrial Parks from Warburg Pincus and Embassy Group. Though Blackstone did not disclose the deal value, sources in the industry pegged the transaction at an enterprise value of Rs 5,250 crore.
Embassy Industrial Parks comprises 22 million square feet of modern logistics and warehousing facilities, as well as yet-to-be-built assets, located across Bengaluru, Delhi-NCR, Hyderabad, and Pune. These are leased to leading e-commerce and retail players. Warburg Pincus had a 70 per cent stake in the $250-million joint venture (JV) set up in 2015, while Embassy had 30 per cent.
Blackstone acquires Embassy Industrial Parks from Warbug Pincus, Embassy Group
Embassy Industrial Parks comprises 10.6 million square feet of modern Grade A logistics and warehousing assets near urban centres, tailored for tenants in rapidly developing sectors.
BusinessToday.In | May 10, 2021 | Updated 20:18 IST
Blackstone is among the top 10 business groups in India by the total value of assets.
Global investment firm Blackstone on Monday said funds managed by Blackstone Real Estate have acquired Embassy Industrial Parks from Warburg Pincus and Embassy Group. Blackstone called it one of India s largest logistics transactions, but didn t disclose the deal value. Embassy Industrial Parks comprises 10.6 million square feet of modern Grade A logistics and warehousing assets near urban centres, tailored for tenants in rapidly developing sectors, the investment firm said in a statement. The warehouses are located across major industrial hubs in India including Bangalore, Delhi NC
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Photo: Remy Gieling / Unsplash.com
May 11, 2021
Funds managed by Blackstone Real Estate, part of global asset management firm Blackstone Group, has acquired Embassy Industrial Parks (EIP) from Warburg Pincus Inc. and Embassy Group for an enterprise value of $700 million in one of the largest deals in India’s emerging warehousing sector.
The transaction has been done in two tranches. In the first tranche announced on Monday, Blackstone has acquired 10.6 million sq. ft for $400 million from private equity firm Warburg Pincus Inc.
In the second tranche, expected to be completed by this month-end, Blackstone will buy the remaining 11 million sq. ft for $300 million, said a person familiar with the development.
Synopsis
Embassy Industrial Parks a 70-30 joint venture between Warburg Pincus and Embassy has total 22 million sq ft logistics assets across India s major consumption centers including metros.
Being one of the largest owners of warehousing spaces globally, the group is moving swiftly to create a large portfolio in India and market watchers say that it is in advanced talks with developers to acquire and build warehousing assets
Private equity major Blackstone Group has acquired Embassy Industrial Parks at an enterprise valuation of Rs 5,250 crore from Warburg Pincus and Embassy Group in the largest yet logistics and warehousing deal in the country.
Embassy Industrial Parks – a 70-30 joint venture between Warburg Pincus and Embassy – has 22 million square feet logistics assets across the country’s major consumption centres, including metros.