Blackstone Group, a private equity firm based in the US, has purchased nearly 5 million square feet of warehousing space from LOGOS India for over Rs 1,725 crore.
This acquisition shows Blackstone’s commitment to expanding its involvement in India’s growing logistics and supply chain sector.
LOGOS had offered three operational warehouses in Chennai and Luhari, Haryana, all over 95% occupied and generating about Rs 125 crore in annual rent. The logistics parks in Chennai are situated in key areas, including Irungattukottai-Poonamallee-Sriperumbudur and Oragadam-Maraimalai Nagar.
On August 26, it was reported that Blackstone, alongside other global investors like Singapore’s GIC and Japan’s Mitsui OSK Lines, was actively competing to acquire this portfolio.
With this purchase, Blackstone will become the largest owner of logistics properties in India, totaling 55 million square feet, in less than four years of investing in this field.
The strong demand for these warehousing properties highlights the appeal of India’s logistics market, especially for high-quality assets managed by reputable owners.
The portfolio promises steady rental income through leases with a variety of tenants from third-party logistics to the automotive, renewable energy, and e-commerce sectors. Companies like Kuehne + Nagel, Iron Mountain, Mahindra Logistics, NCR Logistics, Delhivery, and HealthKart occupy these logistics parks.
LOGOS India operates in major cities with a portfolio of 5.5 million square feet, having monetized about 5 million square feet of that space. The company is also developing an additional 5 million square feet.
In India, a favorable regulatory climate and government policy support have boosted infrastructure spending, leading to increased demand for modern warehouses. This has heightened the interest of institutional investors in well-managed properties that generate income.
Investment in industrial and logistics sectors has remained strong due to the rising demand for these properties and the shift of manufacturing away from China. Government initiatives, such as ‘Make in India’ and production-linked incentives, are enhancing domestic manufacturing and supply chain capabilities.