Blackstone Group has acquired 5 million sq. ft of leased warehousing assets from LOGOS India for INR 1,725 crore, strengthening its position as India's largest logistics property owner with a 55 million sq. ft portfolio. The assets, located in Chennai and Luhari, Haryana, have over 95% occupancy and generate INR 125 crore annually in rental income. Tenants include Mahindra Logistics, Delhivery, and HealthKart. This acquisition, driven by India's robust infrastructure growth, aligns with initiatives like 'Make in India' and PLI schemes, reflecting the rising demand for Grade-A logistics assets and reinforcing the country's supply chain expansion.
US-based private equity firm Blackstone Group has acquired approximately 5 million square feet of operational and leased warehousing assets from logistics company LOGOS India for over INR 1,725 crore, according to individuals familiar with the matter. This acquisition underscores Blackstone's ongoing strategy to enhance its footprint in India's expanding logistics and supply chain infrastructure sector.
The assets sold by LOGOS India include three operational sites located in Chennai and Luhari, Haryana. These properties have an occupancy rate exceeding 95% and generate an annual rental income of around INR 125 crore. The Chennai logistics parks are situated in the Irungattukottai-Poonamallee-Sriperumbudur area and the Oragadam-Maraimalai Nagar region.
Sources revealed that the transaction was finalised earlier this past week, following interest from 10 bidders comprising both domestic and international investors. Blackstone emerged as the successful bidder among competitors, which included global players such as Singapore's sovereign wealth fund GIC and Japanese shipping major Mitsui OSK Lines. Reports of Blackstone's involvement in the bidding process surfaced online earlier this year.
With this acquisition, Blackstone is poised to become India's largest owner of logistics assets, amassing 55 million square feet in less than four years of investment in this segment. This rapid growth highlights the strong demand for logistics properties in India, particularly Grade-A assets that are developed and maintained by institutional owners.
The acquired portfolio has secure rental cash flows from a diversified tenant base across industries such as third-party logistics, automotive, renewable energy, electronics, and e-commerce. Occupants include prominent companies like Kuehne + Nagel, Iron Mountain, Mahindra Logistics, NCR Logistics, Delhivery, and HealthKart.
LOGOS India, which maintains a presence in key Indian cities, previously operated a portfolio spanning 5.5 million square feet and has now monetised nearly 5 million square feet of it. Additionally, the company is in the process of developing another 5 million square feet of logistics assets.
Blackstone declined to comment on the acquisition, while LOGOS India did not respond to email queries as of earlier this week.
India's favourable regulatory environment and government support through policies and reforms have bolstered spending on infrastructure and increased demand for modern warehousing. This trend has driven institutional investors' interest in ready, income-producing logistics properties.
The growing appetite for industrial and logistics assets is further fuelled by the decentralisation of manufacturing from China and government initiatives such as 'Make in India' and Production-Linked Incentive (PLI) schemes. These efforts aim to strengthen local manufacturing and supply chain networks, reinforcing the appeal of logistics investments.
Blackstone's acquisition highlights the increasing appeal of India's logistics sector, supported by policies like 'Make in India' and the PLI scheme. As demand for modern warehousing grows, the transaction underscores the sector's role in driving India's infrastructure and supply chain growth.
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