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Transindia Real Estate Limited to optimize portfolio with the divestment of companies to Blackstone funds

The divestment includes the sale of a logistics park in Jhajjar and 10% stake held in other parks.
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Transindia Real Estate Limited (“the Company”), pursuant to demerger, resulting company of Allcargo Logistics Limited, (BSE: 532749) (NSE: ALLCARGO), today announced the proposed divestment of certain undertakings & subsidiary to funds managed or advised by Blackstone, a global investment firm. The divestment includes the sale of a logistics park in Jhajjar and 10% stake held in other parks. This transaction will result in significant cash proceeds and provide for growth plans of Transindia Real Estate Limited (Formerly known as Transindia Realty & Logistics Parks Limited). The company has built end to end capabilities in setting up and leasing warehouses and logistics parks and developed several marquee properties.

The logistics park in Jhajjar will be sold at an enterprise value of approximately ₹625 Crores, enabling Transindia Real Estate Limited to realize substantial value from this divestment. Additionally, the Company will enter into an agreement to divest its 10% stake held in Malur Logistics & Industrial Parks Private Limited, Venkatapura Logistics & Industrial Parks Private Limited, Kalina Warehousing Private Limited, Panvel Warehousing Private Limited, and Allcargo Logistics & Industrial Park Private Limited, for an equity consideration of near ₹60 Crores.

As a result of these divestments, Transindia Real Estate Limited, the recipient of the cash proceeds, will receive over ₹400 Crores. This infusion of capital will support Transindia’s growth plans, enhance its financial capabilities, and enable strategic investments in new opportunities. Earlier, the company had announced divestment of equipments business, thereby bringing focus entirely on real estate business in line with its long term strategy.

Mr. Shashi Kiran Shetty, Founder and Chairman of Allcargo Group, said, “The divestment of these companies marks an important milestone for Transindia Real Estate Limited. This transaction aligns with our strategy to build end to end capabilities in real estate business encompassing development, leasing and sale of assets. The cash proceeds from this divestment will strengthen our balance sheet and provide the necessary resources for future growth.”

Mr. Jatin Chokshi, Managing Director of Transindia Real Estate Limited, said, “This transaction paves way for future growth with strength in balance sheet to execute new projects and drive growth across other key opportunities in real estate, particularly in logistics parks. We have a great team to execute our expansion strategies and seize lucrative opportunities in the market.” The proposed divestment is subject to finalisation of commercial terms between the parties involved and will also require shareholders’ approval and other statutory approvals/compliance, as applicable. Once the definitive transaction documents are executed and the transaction is completed, further details will be shared with stakeholders.

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