ESR Group invests Rs 360 cr in Cuttack Logistics Park Expansion

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ESR Group invests Rs 360 cr in Cuttack Logistics Park Expansion

ESR Group invests Rs 360 cr in Cuttack Logistics Park Expansion

Industry News
Sep 15,23

This strategic move aims to facilitate the development of a state-of-the-art logistics park known as the ESR Cuttack Logistics Park.

ESR Group invests Rs 360 cr in Cuttack Logistics Park Expansion

On September 13, the ESR Group made a significant announcement regarding its acquisition of 57 acres of land in Cuttack, Odisha. This strategic move aims to facilitate the development of a state-of-the-art logistics park, and the investment commitment for this endeavor stands at approximately Rs 360 crore.

ESR Group, a prominent asset management entity in the Asia Pacific region, shared in their official statement that they have successfully secured this expansive 57-acre plot in Cuttack, which boasts a substantial development potential of 1.2 million square feet. The project, known as the "ESR Cuttack Logistics Park," will see an investment infusion of around Rs 360 crore for its construction and development.

Abhijit Malkani, CEO of ESR India, expressed the significance of the ESR Cuttack Logistics Park in the context of reshaping the next phase of expansion for e-commerce, retail, and third-party logistics (3PL) customers. He emphasised that the continuous growth of online and retail consumers in Odisha was a driving force behind their decision to expand in the region. Moreover, the facility is designed to incorporate green building features, aiming to provide a best-in-class experience.

Notably, the ESR Cuttack Logistics Park was acquired with one operational building, which is now fully leased and occupied by one of India's largest e-commerce companies. ESR Group is progressing as planned with the construction of the second building, with the overall park projected to accommodate a total of six buildings.

This logistics park strategically occupies a prime location in Odisha, the eastern part of India, where large, scalable development sites are relatively scarce. This move marks ESR Group's entry into the Odisha market.

The decision to invest in this logistics facility is underscored by the growing demand for such facilities due to Odisha's resilient economic performance. Over the last decade, the Gross State Domestic Product (GSDP) of Odisha has consistently grown at an average annual rate of 7.9%, excluding the pandemic-affected year 2020-21. This growth has been accompanied by increased income, purchasing power, and robust digital penetration.

The demand for warehousing facilities is primarily driven by various sectors, including third-party logistics (3PLs), e-commerce, retail, consumer goods, durables, paints, chemicals, automobiles, and ancillaries.

As of June 30, 2023, ESR Group boasts a significant development work-in-progress portfolio valued at $13 billion. ESR India, a subsidiary of the ESR Group, stands as a leading developer and manager of industrial and logistics real estate with assets under management (AUM) totalling approximately $1.6 billion.

Source: moneycontrol.com

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