Blackstone to buy 36 acres in Delhi for Rs 295 crore from TARC

Private equity firm Blackstone Group has entered into an agreement with Delhi-based developer TARC Ltd to acquire land parcels spread over 36 acres in Delhi for ₹295 crore.

Embassy Industrial Parks, the entity acquired by the institutional investor recently, will develop a 1 million sq ft warehousing facility on this land parcel 60 km away from Delhi Airport.

A leading global e-commerce firm has already finalised specifications and a letter of intent (LOI) for 51% of the proposed warehousing space for a 20-year fully extended lease term, while talks are on for additional leasing, said people aware of the matter.

The proposed development by Embassy Industrial Parks is expected to be completed over the next 18-24 months, they said.

A Blackstone Group official confirmed the transaction.

The American private equity firm is acquiring the land parcels through its affiliate BREP Asia II EIP Holding (NQ), which will acquire TARC’s two wholly owned subsidiaries, Goodluck Buildtech and Anant Raj Hotels.

The total value of the proposed transaction will be paid in tranches, subject to the satisfaction of certain identified conditions and closing actions, including transfer of land parcels in villages Jindpur, Khera Kalan and Nangli Poona in north Delhi, in favour of Goodluck Buildtech and Anant Raj Hotels, said the developer.

These sites are well-suited for mid-mile logistics requirements of large e-commerce tenants. Situated along a major arterial expressway, the sites have already been proactively identified by the e-commerce player and represent two of only five warehouse zoned sites within Delhi city limits.

BREP Asia II EIP Holding (NQ)’s current portfolio totals 42 million sq ft across top six cities. The 8 million sq ft existing portfolio remains 99% occupied and witnessed no abatements during Covid-19.

The Indian logistics sector has witnessed robust expansion on the back of strong ecommerce growth, simplified tax laws, concessional corporate tax rates and government infrastructure initiatives.

The annual take-up of warehousing and logistics space has increased nearly threefold since 2016 and ecommerce players have been supporting the growth in a significant manner.