Blackstone retains its aces in North India with INR 700 crore deal

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Blackstone Group – the global leader in real estate investing – has signed one of North India’s largest warehousing deals by acquiring 2.5 million sq.ft. of warehousing assets from Vertical Warehousing.

The deal circles a portion of land near Delhi and was negotiated at INR 700 crore, according to sources. International property consultant CBRE was the transaction advisor for the deal. The asset is a mix of operational assets and strategic land parcels for future development. About 1.5 million sq ft of it is fully leased and operational.

“Blackstone has been increasing its warehousing presence in NCR as it is one of the fastest growing market for industrial and logistic sector. The current asset is located in Jhajjar in Haryana and connected to Gurgaon and Delhi,” said a source, even though officially Blackstone, CBRE and Vertical Warehousing declined to comment.

Earlier, Delhi based real estate developer TARC Ltd. sold its warehousing asset in North Delhi to BREP Asia II EIP Holding, an affiliate of funds controlled, by Blackstone for ₹295 crore.

Delhi based Vertical Warehousing owns and operates multiple Grade-A logistic parks across Delhi NCR. Interestingly, another firm based in Delhi – LAS Ventures – also has a warehouse in the region and is trying to get fuelled by an investment of INR 300 crores to develop grade A warehouses across the country.

The Sohna-Ballabgarh market has gained prominence in the last two years since industrial and warehousing player ESR India acquired land there to establish a 77-acre warehouse. The region is attracting foreign funds that want to acquire land for developing logistic parks through joint ventures.