Blackstone Plans to Increase its Logistics Business in India to 100 Million SqFt

Image credits: blackstone.com

Blackstone Focussing on Logistics Business in India 

Blackstone Group, a global leader in private equity, is placing significant bets on warehousing and logistical development in India due to increased consumption driven by demographics, ecommerce penetration, and supportive government initiatives.

In the next three to five years, the institutional investor plans to increase the size of its warehouse portfolio in the country from 40 million square feet to 100 million square feet.

Blackstone will expand its logistics portfolio through its existing joint ventures and partnerships, as well as through the formation of new alliances, according to a company executive.

The demographics and consumption pattern of India, coupled with the country's optimistic economic growth prospects, indicate a tremendous opportunity for logistics, warehousing, and industrial space. According to Asheesh Moht, senior MD and director of real estate acquisitions in India for Blackstone, the government's holistic approach to transforming the logistics sector will assure substantial development potential.

In April of 2023, Blackstone announced that the largest real estate drawdown fund ever raised $30,4 billion. A significant portion of this capital is anticipated to migrate into the logistics and data centre sector, as well as Asia-Pacific, and India in particular.

The fund has already formed an alliance, GreenBase Industrial & Logistics Park, with the Hiranandani Group, committing over Rs 3,000 crore to the development of industrial and logistics parks in India's main cities.

Blackstone has recently established Horizon Industrial Parks, an India-specific infrastructure, to house its 26 million square feet of logistics and warehousing assets and support its swiftly expanding logistics footprint in India.