E-Shang Redwood group to re-enter India; plans to invest $100 mn a year

International logistics developer e-Shang Redwood (ESR) is returning to India with plans to invest over $100 million in the country annually, a top executive at the company said.

Warburg Pincus-backed ESR is one of Asia’s largest developers and operators in logistics and warehousing. It was formed by the merger of e-Shang Cayman Ltd and Redwood Group Asia Pte. Ltd in 2016. Based out of Hong Kong and Singapore, it owns and manages around 7.3 million sq metres of assets in China, Japan, Singapore and South Korea.

Between 2006 and 2009, Redwood Group (before its merger with e-Shang) had secured land and started discussions to form joint ventures in India, but the none of the projects took off. The company finally decided to leave India in 2011 to concentrate in the more institutional, liquid and capital-intensive logistics markets of Japan, China and South Korea around the time.

“We started sending people significantly in 2016 for updated research, securing of a pipeline of prime projects and reconstituting our team. So, we are very active now in India in terms of both sourcing projects and putting together what we feel is our dream team specialised in logistics development, acquisitions, leasing and investment management,” Charles de Portes, co-founder and president of ESR, told Mint over the phone.

The company is in the process of building its leadership team and setting up its India office in Mumbai. Jai Mirpuri, senior MD of investments at ESR in Singapore, has been appointed chief investment officer for India.

“Our average pace of investment may well translate into in excess of $100 million annually, comprised of land and construction. We intend to make material investments from the second half of this year and are in negotiations with multiple potential investment partners including those with which we have strong relationships,” Portes said.