ESR Group on Wednesday announced that it has acquired 57 acres of land in Cuttack, Odisha to develop a logistic park with an investment of about Rs 360 crore.
ESR Group, one of the leading asset managers in Asia Pacific, in a statement, said it has acquired 57 acres of land in Cuttack with a total development potential of 1.2 million square feet.
ESR Group will make an investment of about Rs 360 crore for the construction and development of ESR Cuttack Logistics Park.
Abhijit Malkani, CEO of ESR India, said, “ESR Cuttack Logistics Park assumes a pivotal role in reshaping the next phase of expansion for e-commerce, retail, and 3PL customers.” The steadfast growth of online and retail consumers in Odisha has motivated us to expand in the region and offer a best-in-class facility integrated with green building features, he said.
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 is on track to complete the construction of the second building. The park is projected to accommodate six buildings.
ESR Cuttack Logistics Park is a multi-building facility strategically located in Odisha, the eastern part of India, where the availability of large scalable development sites is rare, the company said.
This marks ESR’s foray into Odisha.
The demand for logistics facilities has surged due to the resilient growth of Odisha’s Gross State Domestic Product (GSDP) over the last 10 years at 7.9% annually on average (excluding Covid-19 year 2020-21), alongside increased income and purchasing power as well as robust digital penetration, the company said.
Warehousing demand is mainly driven by third-party logistics (3PLs), e-commerce, retail, consumer goods, durables, paints, chemicals, automobiles, and ancillaries, it added.
As of June 30, 2023, ESR has a development work-in-progress of $13 billion.
ESR India, part of the ESR Group, is a leading developer and manager of industrial and logistics real estate with assets under management (AUM) of about $1.6 billion.
