**ESR India and Xander Investment Management Plan to Divest Warehousing Assets**
ESR India, a collaboration between Hong Kong’s ESR Group and Germany’s Allianz Real Estate, is set to monetize its extensive warehousing assets in India. This move comes as interest in industrial real estate continues to rise. Sources familiar with the situation indicate that both ESR India and Xander Investment Management aim to sell 100% of their stakes in their respective portfolios.
ESR India, which boasts approximately 10 million square feet of warehousing space across various Indian cities, previously attempted to sell a majority stake—around 90%—of its portfolio in 2023. Although discussions with potential investors, including Blackstone Group, did not materialize, the firm received a valuation between $400 million and $450 million at that time. This time, they are looking to fully divest and anticipate a higher valuation.
The partnership between ESR and Allianz began in 2018, with plans to invest around $1 billion, including debt, to develop large-scale warehousing and industrial facilities in India. Meanwhile, Xander Investment Management, which has invested in the office and retail sectors, established a $250 million industrial real estate venture in 2019. Xander’s portfolio includes four warehousing properties located in Chennai, Bagnan (near Kolkata), and Bhiwandi (near Mumbai). As an asset management company, Xander is also looking to fully divest its holdings.
India’s warehousing market has seen significant growth, with a total stock of approximately 438 million square feet across its top eight cities. Of this, around 238 million square feet is classified as Grade A space, with institutional operators and investors owning about 100 million square feet—up from just 28 million square feet in 2019. This trend reflects increasing investor confidence in the logistics sector.
Recent reports indicate that logistics and warehousing have emerged as the leading asset class in 2024-25, attracting 48% of private equity funding, the highest in five years. This surge in investment highlights the growing appeal of industrial assets among global investors.
**FAQ**
**What is the significance of ESR India and Xander’s divestment plans?**
The divestment plans of ESR India and Xander Investment Management signify a strong investor interest in the logistics and industrial real estate sector in India, reflecting the growing confidence and potential for returns in this market.