TransIndia Real Estate is selling stakes in its logistics parks to funds managed by global investment firm Blackstone. The company is the real estate company spun off from Allcargo Logistics. It is engaged in the development and leasing of industrial and logistics parks and commercial space and holds other real estate assets.
The company also aims to build logistic parks in Kolkata, Mumbai and Bengaluru with an investment of Rs. 1,500 crore over two years. A portion of the proceeds will go towards investing in the park’s facilities.
“The divestiture includes the sale of a logistic park in Jhajjar and 10% interest in other parks. “This transaction will result in significant cash proceeds and enable growth plans for TransIndia Real Estate Limited (formerly known as TransIndia Realty & Logistics Parks Limited),” said an executive.
Gross proceeds from the sale are approximately Rs.650 crore, Ravi Jakhar, Allcargo’s chief strategy officer, told ET. Of this, 400 crore rupees will be invested in the logistics parks Kolkata, Mumbai and Bengaluru.
This capital injection will support TransIndia’s growth plans, enhance its financial capability and enable strategic investments in new opportunities.
Previously, the company announced the divestment of the equipment business, thereby fully focusing on the real estate business, in line with its long-term strategy.
“The divestiture of these businesses represents an important milestone for TransIndia Real Estate Limited. This transaction is in line with our strategy to build a comprehensive real estate business capability spanning development, leasing and sales of assets. The cash proceeds from this divestment will strengthen our balance sheet and provide the necessary resources for future growth,” said Chief Executive Officer Shashi Kiran Shetty.