Mirae Asset Credit Opportunities Fund has acquired a pre-leased Grade A industrial asset at Bhiwandi, in the Mumbai Metropolitan Region, from Prakhhyat Group for Rs 130 crore ($15 million).
This is Mirae Asset Investment Group’s first acquisition under its India-focused funds allocation for high-grade domestic real estate opportunities. Mirae Asset has multiple business entities across financial services in India, including a mutual fund business.
Jun Young Hong, Director, Mirae Asset Investment Managers (India) Pvt. Ltd., said: “We are also exploring opportunities at office acquisition deals including IT parks, corporate offices besides logistics and industrial space. We continue to be bullish on the Indian economy and the real estate sector in India.”
The industrial property is housed in the 160-acre K-Square Integrated Industrial Park and is spread over nine acres. With a total leasable area of over 3 lakh square feet, this asset houses an incumbent tenant, Rhenus Logistics, a global logistics services provider headquartered in Germany with operations across Europe, Asia, and South America.
Sandeep Bagla, Director – Prakhhyat Group, said: “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 to international standards. Global investment groups will increasingly identify and secure such superior assets to ramp up their presence in India.”
Anarock Capital Advisors acted as the transaction consultants for the deal.
Shobhit Agarwal, MD and CEO of Anarock Capital, said, “Bhiwandi commands approximately 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 three-four years.”
Post the COVID-19 pandemic, the Indian warehousing industry has gone from a sunrise sector to full-blown supernova status. Underpinning its tremendous growth potential in the future is rapidly rising demand from 3PL and e-commerce companies, and across sectors like retail, FMCG, manufacturing, and electronics.