**Title:** Alta Capital Competes for Xander Group’s Warehousing Assets
**Meta Description:** Alta Capital is among the investors vying for Xander Group’s warehousing portfolio in India, valued at over ₹2,000 crore.
**URL Slug:** alta-capital-xander-group-warehousing-assets
**Headline:** Alta Capital Joins Race for Xander Group’s Prime Warehousing Portfolio in India
In a significant move within the Indian warehousing sector, private equity firm Alta Capital’s logistics platform, LogiCap, is competing with several investors to acquire the warehousing portfolio of Singapore-based Xander Group. This portfolio, encompassing 3.5 million square feet across Chennai, Mumbai, and Kolkata, has attracted interest from notable bidders including Horizon Industrial Parks, CapitaLand Ltd, Ascendas Firstspace, and Morgan Stanley Real Estate Investing (MSREI).
Sources familiar with the situation indicate that Alta Capital is nearing negotiations for a potential deal with a cap rate of approximately 7.75%. A cap rate, which reflects the annual return a property generates relative to its market value, is a critical metric in real estate transactions. Real estate investment advisor JLL has been appointed as the banker for this deal, although Xander Group, Alta Capital, and JLL have refrained from commenting on the ongoing discussions.
The Xander Group is reportedly looking to divest a substantial portion of its warehousing assets, with an estimated valuation exceeding ₹2,000 crore. This potential transaction comes at a time when the Indian warehousing sector is experiencing increased activity, as various investors seek to monetize their portfolios. Earlier reports indicated that Xander and ESR’s India arm were exploring exits from their warehousing assets, capitalizing on the sustained interest in industrial real estate.
Xander Group, which has investments across India’s office and retail segments, launched a $250 million industrial real estate platform in 2019. ESR India, a joint venture between Hong Kong-based ESR Group and Germany’s Allianz Real Estate, is a prominent player in the logistics and industrial real estate market, managing around 10 million square feet of warehousing assets across the country.
Anuj Puri, chairman of Anarock Group, a real estate consultancy, noted the growing trend of exits in the Indian warehousing segment. Major investors, including global private equity firm Bain Capital and Canadian real estate company Ivanhoé Cambridge Inc., have recently divested their stakes in Indian warehousing.
As the warehousing sector continues to evolve, investors are becoming increasingly selective, focusing on grade A assets in top-tier cities and favoring tech-enabled and environmentally sustainable warehouses. According to data from Knight Frank India, private equity investments in Indian real estate reached $4.2 billion in 2024, marking a 32% increase from the previous year, with warehousing accounting for 45% of these investments.
In conclusion, the competition for Xander Group’s warehousing portfolio highlights the dynamic nature of the Indian real estate market, particularly in the logistics sector, as investors seek to capitalize on emerging opportunities.
**FAQ Section:**
**Q: What is the significance of the cap rate in real estate transactions?**
A: The cap rate is a key metric that indicates the annual return a property generates relative to its market value, helping investors assess the potential profitability of a real estate investment.
