Private equity company, Blackstone Group Inc. has decided to procure a portion of the warehouse business of the Mumbai-headquartered firm, Allcargo Logistics. The present transaction shows the US-based PE company tries to expand its portfolio of realty assets.
Blackstone will invest up to INR 380 crore in the company's warehousing subsidiaries through a combination of equity and debentures, VC Circle reported citing the Mumbai-listed Allcargo statements in a stock-exchange filing.
Blackstone and Allcargo plan to make further investment in the future to develop industrial and logistics parks across certain key markets of India, Allcargo Logistics said in the regulatory filing.
The business deal is likely to proceed gradually in the succeeding 12 months, which is subjected to be affected by closing conditions and achievements of certain milestones, reported the cited media agency.
The present transaction has happened following Blackstone, in association with Hiranandani Group, created warehousing-focused investment platform.
Until now, Blackstone has infused more than $5 billion in the Indian realty sector through residential, realty, commercial and hospitality. With the latest acquisition, the company has added a new asset in its share.
In the previous year, the cited media agency had reported that the American PE firm sought to enter in the warehousing business.