GIC, a leading global Singapore-based investment firm, and ESR Group have jointly established a $600 million (₹4,980 crore) joint venture to acquire income-producing core industrial and logistics assets in India.

The strategic 80:20 partnership core JV represents an extension of the existing partnership in India between the two, which was initiated in 2020.

The new Core JV provides focused capital dedicated to enabling the inorganic growth of the platform and will invest in stabilised operational assets in strategic locations across Tier-I and Tier-II cities.

With an upsurge in the share of organised retail and e-commerce, 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.

Jeffrey Shen and Stuart Gibson, ESR co-founders and co-CEOs, said that as APAC’s largest real estate asset manager, ESR’s integrated fund management platform has provided capital partners with access to growth opportunities propelled by the positive trends of e-commerce and digital transformation.

These trends open new investment opportunities to ESR and capital partners as the demand for advanced, large-scale, well-located logistics and industrial assets becomes even greater.

Abhijit Malkani, CEO, ESR India, said the Core JV platform will invest in upgrading assets and adding sustainability elements to ensure the same product quality for customers as it does for its own projects.

ESR India, part of the ESR Group, is a leading developer and manager of industrial and logistics real estate with assets under management of about $1.7 billion and over 18 million sq. ft. of GFA.

ESR is the largest sponsor and manager of REITs in APAC, with a total AUM of $45 billion.