Embassy Industrial Parks, a subsidiary of global investment firm Blackstone, has made a significant stride in India’s real estate landscape by acquiring 124 acre of prime land on the outskirts of Bengaluru, Karnataka. The strategic location in Nelamangala taluk positions it as a promising site for future industrial development. The acquisition from the Karnataka Industrial Areas Development Board (KIADB) further solidifies Blackstone’s commitment to expanding its footprint in the country’s warehousing and logistics sector.
The completion of the registration and sale deed in October 2023 marks a crucial milestone for the project. Although the documentation and paperwork were recently finalized, Blackstone is poised to transform this expansive land into a state-of-the-art industrial park, intending to offer leaseable spaces.
This move follows Blackstone’s acquisition of Embassy Industrial Parks in 2021, a joint venture between Warburg Pincus and the Embassy Group. The enterprise value of this deal amounted to Rs 5,250 crore. Transitioning from a significant presence in office real estate, Blackstone is now directing its focus towards India’s burgeoning warehousing and logistics segment. Plans are underway to launch real estate investment trusts (REITs) as part of the strategic vision for this sector.
Blackstone currently boasts an extensive warehousing portfolio in India, totaling 40 million sqft. The partnership with the Hiranandani Group aims to identify and develop new warehousing assets, complemented by a robust 90 percent stake in Allcargo Logistics. Globally, Blackstone manages a warehousing portfolio of 1.2 billion sqft, constituting 40 per cent of its overall real estate holdings.
This acquisition underscores Blackstone’s commitment to leveraging the potential of India’s industrial real estate, aligning with broader trends in the logistics sector. The move strategically positions Blackstone to play a pivotal role in shaping the future of warehousing and logistics infrastructure in the region.