Allcargo partners with Blackstone to develop logistics parks

Allcargo Logistics (Allcargo), one of India?s largest integrated, end-to-end logistics services providers has partnered with the global private equity investor ? the Blackstone Group (Blackstone), to develop logistics parks in key consumption hubs in India.

Blackstone will invest up to Rs 3.80 billion in Allcargo to develop industrial and logistics parks across the country. The company also proposes to make its investment in the platform, by way of debt and equity.

Allcargo will retain a minority stake in the various logistics assets and transfer its debt as it relates to these specific assets to their relevant subsidiaries.

The transaction is expected to conclude in a phase-wise manner over the next 12 months, subject to satisfaction of customary closing conditions and achievement of certain milestones.

?The Indian warehousing sector is scaling an expansionary curve backed by a robust regulatory environment and government thrust in boosting manufacturing, e-commerce and organised retail. This sector has emerged as an attractive investment destination for global investors. Through this strategic tie-up, we reiterate our commitment and positioning to create a global benchmark in warehousing infrastructure and provide state-of-the-art warehousing solutions to our customers,? stated Shashi Kiran Shetty, Chairman, Allcargo Logistics.

Allcargo has completed and ongoing projects in advanced stage of developments for 6 million sq ft of Grade A logistics parks across the NCR-Delhi, Bengaluru, Hyderabad, Ahmedabad, Pune, JNPT in MMR (Mumbai), Hosur and Goa. About 80 per cent of the company?s warehousing portfolio is pre-leased of which close to 1.5 million sq ft is already income producing. The company further has projects in the planning stage for another 3 million sq ft.

This partnership will help Allcargo?s growing 3 PL (third party logistics) business and enable MNCs and Indian companies? access to its world-class warehousing assets.

Allcargo is the global leader in LCL consolidation and one of India?s largest players in integrated logistics solutions. The company offers specialised logistics services across Multimodal Transport Operations, Container Freight Station Operations/Inland Container Depot Operations, Project & Engineering Solutions and Logistics Parks. Benchmarked quality standards, standardised processes and operation excellence across all the services and facilities, have enabled the company to emerge as the market leader in all these segments.