Allcargo Logistics arm to sell stake in logistics parks to Blackstone

Transindia Real Estate Limited on Wednesday announced the proposed divestment of certain undertakings & subsidiaries to funds managed by global investment firm Blackstone. The divestment includes the sale of a logistics park in Jhajjar and 10 per cent stake held in other parks.

According to the company, a subsidiary of Allcargo Logistics, the logistics park in Jhajjar will be sold at an enterprise value of about Rs 625 crore, giving Transindia substantial value from this divestment.

It will also sign an agreement to divest 10 per cent stake held in Malur Logistics & Industrial Parks Pvt Ltd, Venkatapura Logistics & Industrial Parks Pvt Ltd, Kalina Warehousing Pvt Ltd, Panvel Warehousing Pvt Ltd, and Allcargo Logistics & Industrial Park Pvt Ltd, for an equity consideration of nearly Rs 60 crore.

 

Transindia Real Estate will receive over Rs 400 crore following these divestments.

“This transaction will result in significant cash proceeds and provide for growth plans of the company, formerly known as Transindia Realty & Logistics Parks Limited,” it said.

The company is a real estate firm demerged from Allcargo Logistics, which has built end-to-end capabilities in setting up and leasing warehouses and logistics parks and developed several marquee properties.

"The divestment of these companies marks an important milestone for Transindia Real Estate. The transaction aligns with our strategy to build end-to-end capabilities in the real estate business encompassing development, leasing and sale of assets. The cash proceeds from the divestment will strengthen our balance sheet and provide the necessary resources for future growth,” said Shashi Kiran Shetty, founder and chairman, Allcargo Group.

Earlier, the company had announced divestment of equipments business, thereby bringing focus entirely on real estate business in line with its long term strategy.

Jatin Chokshi, managing director of Transindia Real Estate Limited, said, “This transaction paves way for future growth with strength in balance sheet to execute new projects and drive growth across other key opportunities in real estate, particularly in logistics parks. We have a great team to execute our expansion strategies and seize lucrative opportunities in the market."

The Company was created to tap the opportunities present in the industrial real estate space owing to the boom in logistics and manufacturing in India. It has also built over 6 million square feet of assets across India.