Korean giant will channel $17 million to acquire property
South Korea’s Mirae Asset Global Investments announced on Dec. 6 that its Indian subsidiary would spend $17 million to acquire a large-sized logistics center in Bhiwandi near Mumbai.
The warehousing property, which was completed last year, is constructed on a site of some 28,000 square meters.
Bhiwandi works as a hub, which connects Mumbai and many other cities, by accommodating logistics centers for such companies as Samsung, Amazon, and BMW.
The facility of Mirae Asset would be leased to Rhenus Logistics, an international company headquartered in Germany. It runs more than 30 logistics centers in India.
Mirae Asset noted that it marked the first time for a foreign asset management company in India to invest in logistics facilities.
“In tandem with the high economic growth rate of India and the country’s proactive investments in infrastructure, we plan to tap into potential-laden logistics centers and data centers,” a Mirae Asset official said.
“Our Indian unit is composed of experts on local markets. They are delving into many other major properties.”
According to state-backed Invest India, the fast expansion of the online retail market is expected to boost the demand for logistics centers.
But the South Asian country lacks the nationwide infrastructure to meet the surging demand.
Mirae Asset made a foray into the Indian market in 2006 to survive the global financial crisis in the late 2000s when most foreign asset management firms left the market.
As the only independent foreign asset management company, Mirae Asset operates some $17 billion in assets under management to rank No. 9 in the market.