Transindia Real Estate Limited divests logistics park for Rs 636.71cr
In a strategic move aimed at enhancing its financial health and fueling future growth, Transindia Real Estate Limited (TREL), a resultant entity from Allcargo Logistics Limited, has successfully executed a significant divestment. The company has agreed to sell its logistics park located in Jhajjar, Haryana, for an impressive enterprise value of approximately ₹636.71 crore. This divestiture is poised to bolster TREL’s cash reserves by over ₹433.37 crore, marking a pivotal step towards achieving a debt-free status and reinforcing its growth trajectory.
The sale of the Jhajjar logistics park is part of a larger divestment strategy by TREL, which also includes the sale of a 10% stake in various logistics and industrial park entities for an equity consideration nearing ₹4.55 Crores. This comprehensive divestment strategy underscores TREL’s commitment to optimizing its asset portfolio and focusing on core growth areas.
Shashi Kiran Shetty, Founder and Chairman of the Allcargo Group, highlighted the logistic sector’s transformational growth potential, driven by the government’s focus on infrastructure development. TREL aims to leverage this momentum by continuing to develop world-class industrial and logistics parks, thus contributing significantly to the infrastructure landscape.
Jatin Chokshi, Managing Director of Transindia Real Estate Limited, emphasized the company’s dedication to developing state-of-the-art logistics parks across India. TREL’s initiatives align with India’s ambition to become a leading global manufacturing hub, with the company playing a crucial role in supporting this journey through its development projects.
TREL boasts a commendable track record, with over 5.05 million sq ft of industrial and logistics parks across key Indian markets. The company’s strategic focus on attracting marquee clients and transitioning to asset sales has been instrumental in its success. With plans to develop Grade A warehousing spaces in key locations like Malur, Karnataka, and exploring opportunities in Tamil Nadu and Uttar Pradesh, TREL is set to expand its footprint further.
This divestment and the company’s ongoing projects highlight TREL’s strategic vision to maximize returns and ensure sustained growth. By focusing on developing environmentally friendly logistics infrastructure, TREL aligns with the Allcargo Group’s vision to minimize environmental impact and promote sustainability in the real estate and logistics sectors.
The divestment by Transindia Real Estate Limited signifies a strategic reshuffling in the real estate and logistics sector, reflecting a keen understanding of the market dynamics and a clear vision for future growth. This move not only strengthens TREL’s financial position but also paves the way for significant investments in emerging business opportunities. The focus on developing green and sustainable infrastructure is particularly noteworthy, underscoring the industry’s shift towards more responsible and eco-friendly practices.