Blackstone likely to acquire Embassy Industrial Parks for US$ 700 million

Blackstone Group is set to acquire Embassy Industrial Parks at an enterprise valuation of US$ 700 million or Rs 5,250 crore from Warburg Pincus and Embassy Group in the largest ever logistics and warehousing deal in India. The transaction is also the first large private equity investment of 2021. With this complete buyout transaction, Blackstone will become the country’s largest warehousing space landlord with over 40 million sq ft logistic parks in assets. The private equity firm, Blackstone Group is set to become the biggest retail assets owner too with the conclusion of its $1.5 billion deal with Prestige Group. Embassy Industrial Parks, a 70-30 three way partnership between Warburg Pincus and Embassy, has whole 22 million sq ft property, whereas Blackstone already has 18 million sq ft warehousing property in its portfolio by its stake buys in Hiranandanu Group and Allcargo Logistics’ warehousing property. Out of whole 22 million sq ft property of Embassy Industrial Parks, 3.5 million sq ft are constructed and leased to shoppers together with Amazon, Mahindra Logistics, FirstCry, Myntra, Delhivery and Rhenus Logistics amongst others.

Embassy Industrial Parks has warehouses in Chakan in Pune, Sriperumbudur and Hosur in Tamil Nadu, Farrukhnagar and Bilaspur in Delhi-NCR, Kothur in Hyderabad—and owns land in Bangalore.