Logistics real estate platform ESR has acquired around 8 acres of land from real estate firm TARC Limited to expand its operations in Delhi.
Its in-city warehouse has a development potential of around 4 lakh sq ft, located in Alipur, Delhi National Capital Region (NCR). TARC Ltd focuses on the upper mid-income and luxury housings and will cash out non-core business. It is the second warehousing sale by the TARC. Last year, the company sold a warehousing asset in North Delhi to BREP Asia II EIP Holding Private Limited for Rs 295 crore. TARC continues to off-load its non-core assets, including warehousing and retail assets. The company is in talks with global funds to off-load more retail and warehousing assets. According to a source, the company's residential market is doing significantly well, and sales have reached the 2014 level. The company wants to increase the pace of residential projects and reduce debt. The warehousing sector in India has attracted large institutional investments, allocating new capital to the warehousing sector as demand remains strong from e-commerce and logistics firms and easing of Goods and Services Tax (GST) policies. Sources said that these sites are suited for mid-mile logistics requirements for large e-commerce sites. ESR plans to expand its high demand in-city distribution centres. The company plans to buy both greenfield and brownfield properties over 15 acres of land. It will set up land acquisitions to expand its portfolio and develop in-city distribution centres, with high demand from e-commerce and retail firms. Last year, ESR had closed two land acquisitions in Gujarat and Chennai. Currently, it is present in nine cities with 16 operational sites across India, having a total gross floor area (GFA) of about 18 million sq ft. Image Source
