Global private equity (PE) firms are showing strong interest in acquiring the warehousing portfolio of ESR India, with the potential deal estimated at ₹3,500 crore. This signifies the increasing confidence of global investors in India's logistics and warehousing sector, particularly in Tier II and Tier III cities.
Several prominent global PE firms, including Blackstone, Brookfield, and Ascendas, have reportedly submitted binding bids for ESR India's warehousing assets. The deal is in its final stages and could value the portfolio between $400-420 million.
ESR India has been expanding its footprint in the Indian logistics and warehousing market. In October 2023, ESR acquired 58 acres of land in Nagpur for approximately INR 400 crore (US$48 million) to develop its second logistics park in the city, named ESR Nagpur Logistics Park 2. This park will have a development potential of 1.4 million sq. ft. and is designed to accommodate 10 buildings catering to e-commerce, 3PL, retail, and FMCG sectors. ESR's first logistics park in Nagpur is operating at full occupancy.
In June 2024, ESR India invested over $33 million to expand its industrial park in Oragadam, near Chennai, by acquiring an additional 27 acres, bringing the total area to 107 acres. The company aims to expand its warehousing facility to cater to customers in the Oragadam-Sriperumbudur precinct. The industrial park already houses several Fortune 500 companies operating in various sectors.
ESR has demonstrated significant growth in the Indian market, building a best-in-class local team, acquiring land, and securing multiple build-to-suit (BTS) contracts. As of June 2023, ESR has approximately US$1.6 billion in assets under management (AUM) in India, with 2.4 million sqm of GFA.
Several factors contribute to the increasing attractiveness of the Indian logistics and warehousing sector for global investors. The growth of e-commerce, increasing internet and smartphone penetration, and favorable demographics are driving demand for modern logistics facilities. Additionally, government initiatives such as infrastructure development and increasing transparency are boosting the sector. The interest from global private equity firms in ESR India's assets underscores the explosive growth potential in tier II and III cities.
In July 2025, GMR Group acquired a 70% stake in ESR GMR Logistics Park for approximately ₹41 crore, now owning 100% of the venture. This acquisition allows GMR to fully integrate EGLPPL into its airport land development strategy and strengthen Hyderabad’s position as a major logistics and warehousing hub.
ESR has been actively expanding its presence in India through acquisitions and joint ventures. In November 2018, ESR entered into a strategic partnership with Allianz Real Estate, targeting a total investment of approximately US$1 billion into India's logistics and industrial property market. The joint venture focuses on developing large-scale facilities in key cities across India.
The potential acquisition of ESR India's warehousing portfolio by global PE firms highlights the strong growth prospects of the Indian logistics sector. With increasing demand for modern warehousing facilities and a favorable regulatory environment, the sector is expected to attract further investments from both domestic and international players.
