The platform, owned and managed by Blackstone Real Estate funds, has signed a 45-year partnership agreement for this purpose with Central Warehousing Corporation, a public warehouse operator established by the Government of India under the Ministry of Consumer Affairs, Food and Public Distribution.
During this period, Horizon Industrial Parks will transform government-owned assets into modern Grade A facilities, suited to tenants in fast-growing sectors such as e-commerce, retail, third-party logistics and cold chain.
“Logistics is one of Blackstone’s highest conviction investment themes globally, including in the growing Indian market, where we bring scale, operational expertise and a track record of success. We will bring the best of Blackstone and Horizon and work closely with CWC to create world-class warehouses that provide efficient delivery solutions,” Asheesh Mohta, head of real estate acquisitions in India at Blackstone, told ET.
Horizon Industrial Parks’ investment commitment in this partnership is expected to be around Rs 700 crore to support portfolio growth.
“This partnership with the world’s largest alternative asset manager and one of the most prominent owners of high-quality logistics globally will help monetize our assets into modern warehouses catering to some of India’s leading brands. Our aim is to achieve operational excellence and support India’s rapid urbanization,” Amit Kumar Singh, MD, CWC. The majority of this portfolio is concentrated in last-mile locations in Mumbai, Pune, the National Capital Region, Chennai and Bangalore, in close proximity to residential areas and urban centers. With a development potential of 2.4 million square feet, this is one of the largest last-mile logistics portfolios in India. Horizon Industrial Parks, along with its subsidiaries, manages 25 industrial and logistics parks spread over 1,700 acres with an area of 43 million square feet across 10 key markets in India.
Logistics is one of Blackstone’s top asset classes globally, as it is the largest owner of warehousing space. To date, it has invested over $55 billion in this segment and owns over 575 million square feet of warehousing space worldwide.
Being one of the largest owners of warehousing spaces globally, the group is now moving quickly to create a large portfolio in India as it is in advanced talks to acquire and build warehousing assets here.
Following the implementation of the Goods and Services Tax (GST) and the emergence of e-commerce, India’s logistics and warehousing sector is poised for transformative growth. The government’s decision to grant the logistics industry infrastructure status is enabling developers to access low-cost funding for their development.
India is currently experiencing a significant boom in its logistics and warehousing market, driven by a combination of economic reforms, infrastructure development and the rapid growth of e-commerce. The expansion of this sector reflects broader changes in India’s economy, which is increasingly geared towards efficiency, speed and modernity in its supply chain and logistics operations.
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