Global investors, including Blackstone Group, Singapore's GIC, and Japan's Mitsui OSK Lines, are competing to acquire LOGOS India's logistics assets, spanning nearly 5 million square feet. These assets, located in key logistics hubs like Chennai and Haryana, have attracted bids ranging from INR 1,650 crore to INR 1,700 crore, reflecting strong demand. The portfolio, with 95% occupancy and generating INR 125 crore annually, is leased to top companies across various industries. LOGOS India, managing 5.5 million square feet, is monetising most of its assets. Government policies and rising demand for modern warehouses are driving strong investments in India's logistics sector.
Blackstone Group, Singapore's GIC and Japanese shipping titan Mitsui OSK Lines are among the many global investors bidding to acquire LOGOS India's logistics assets. These assets span nearly 5 million square feet, according to sources with direct knowledge of the situation. These global entities are among a competitive group of 10 bidders, which includes both domestic and international investors, vying to acquire three operational logistics assets located in Chennai and Luhari, Haryana. The bids for these assets range between INR 1,650 crore and INR 1,700 crore, reflecting the high level of interest and competition among investors in securing prime logistics properties in India.
The strong demand highlights the rising appeal of India's logistics sector, including grade A quality assets that are developed and managed by institutional owners, attracting significant interest from leading global investors. According to a spokesperson, the total amount of money offered by all the bidders for these high-quality logistics assets is over INR 15,000 crore. The transaction, which involves selling these assets, is expected to be completed by fully acquiring the special purpose vehicles (SPVs) that hold these assets.
The current portfolio of the company holds an occupancy level of 95% and brings in a yearly revenue of INR 125 crores. The logistics parks in Chennai are situated in two key areas that are strategically important for logistics and transportation: the Irungattukottai - Poonamallee - Sriperumbudur (IPS) and the Oragadam-Maraimalai Nagar (OMM). The portfolio of logistics parks generates steady rental income through leases to a diverse range of tenants across various industries, including third-party logistics, automotive, renewable energy, electronics, and e-commerce. These logistics parks are home to several prominent manufacturing and warehousing companies, such as Kuehne+Nagel, Iron Mountain, Mahindra Logistics, NCR Logistics, Delhivery, and HealthKart.
LOGOS India currently manages a portfolio of logistics assets totalling 5.5 million square feet, spread across six major cities in India and is now in the process of monetising, or selling, around 5 million square feet of this portfolio. They are also working on developing around 5 million sq. ft. In India, the government's supportive policies and regulatory changes have encouraged more spending on infrastructure, which has increased the need for modern warehouses. As a result, institutional investors are now very interested in buying these ready-to-use, well-managed properties that generate income.
Investments in the logistics and industrial sectors continue to be strong, supported by rising demand for this type of asset, as well as manufacturing capabilities moving away from China to other regions, and the government launching schemes to uplift development such as 'Make in India' and production-linked incentive scheme (PLI). Given the increasing demand for last-mile deliveries and logistics, developers, owners, operators, and investors have maintained strong confidence in this asset class.
The competitive bidding for LOGOS India's logistics assets, involving major global investors like Blackstone Group and Mitsui OSK Lines, underscores the growing interest in India's logistics sector. With bids ranging from INR 1,650 crore to INR 1,700 crore for nearly 5 million square feet of prime logistics properties, the total offers exceed INR 15,000 crore, reflecting strong demand for grade A quality assets. The high occupancy rate of 95% and annual revenue of INR 125 crores from these assets further enhance their appeal. Government initiatives like 'Make in India' and production-linked incentives are driving investments in modern warehouses, making the logistics sector increasingly attractive to institutional investors. Overall, the transaction signals strong confidence in India's logistics and industrial sectors, fuelled by rising demand and strategic shifts in manufacturing.
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