For INR 130 crore, the Mirae Facility Credit Opportunities Fund has announced the outright purchase of a pre-leased Grade A industrial asset in Bhiwandi, MMR.
According to a release issued, the industrial property, which spans 9 acres and is located in the 160-acre K-Square Integrated Industrial Park, was purchased from the Prakhhyat Group.
This transaction represents a rare instance where a foreign institutional fund has been able to establish a foothold in the prestigious warehousing and industrial market of Bhiwandi. It also serves as Mirae Asset Investment Group’s first acquisition under its India-focused funds allocation for high-grade Indian real estate opportunities.
In India, Mirae Asset operates a number of financial services-related corporate organisations, including a flourishing Mutual Fund industry.
Director of Mirae Asset Investment Managers (India) Pvt. Ltd., Jun Young Hong, claims that this transaction is entirely consistent with the company’s goal of making investments in top-tier commercial leased properties in India.
“We are also exploring opportunities at office acquisition deals including IT parks, and corporate offices besides logistics & industrial space. We continue to be bullish on the Indian economy and the real estate sector in India,” he said.
This facility is home to an established tenant, Rhenus Logistics, a supplier of international logistics services with operations throughout Europe, Asia, and South America, and has a total leasable space of over 3 lakh square feet.
“We congratulate Mirae Asset Investment Managers on this highly strategic acquisition,” says Sandeep Bagla, Director – Prakhhyat Group.
“This warehousing space will deliver a massive competitive advantage. Such Grade-A warehousing assets have a multi-faceted beneficial impact on operational efficiencies and are aligned with international standards. Global investment groups will increasingly identify and secure such superior assets to ramp up their presence in India.”
The deal’s transaction advisors were ANAROCK Capital Advisors.
Shobhit Agarwal, MD & CEO – ANAROCK Capital, says, “We are privileged to have secured this high-octane acquisition for Mirae Asset Group, which has astutely identified a highly strategic asset in one of West India’s most prominent growth corridors for industrial and logistics industry. Bhiwandi commands approx.”
“16% share among the top 10 micro-markets, now dominating the Grade A warehousing space. Due to an increase in demand, such Grade-A warehousing assets will witness anywhere between 15-20% of annual growth over the next 3-4 years.”
After the COVID-19 outbreak, the Indian warehousing sector went from being a rising business to a full-fledged supernova.
Future demand from 3PL and e-commerce businesses, as well as from industries including retail, FMCG, manufacturing, and electronics, is fast expanding, which will support its enormous development potential.