bengaluru german insurer and asset management company allianz has tied up with global logistics developer eshang redwood esr to jointly invest about 1 billion in indias rapidly developing logistics and warehousing sectorthe jv to be done by allianz real estate the real estate arm of the conglomerate will start with an immediate equity infusion of 225 million to be raised to 1 billion assets under management platform the jv will aim to set up grade a warehouses in te top eight cities of the country mumbai pune chennai bangalore hyderabad ahmedabad kolkata and national capital regionindias logistics sector is coming of age the sector is benefitting from a lot of favorable trends such as stellar consumption patterns continued infrastructure spending increasing transparency and the nationwide implementation of a uniform indirect tax system said rushabh desai asiapacific ceo of allianz real estatewarburg pincusbacked esr is one of asias largest developers and operators in logistics and warehousing formed by the merger of eshang cayman and redwood group asia pte in 2016 based out of hong kong and singapore it owns and manages around 73 million sqm of assets in china japan singapore and south korea we are delighted to partner with allianz an existing strategic partner of esr in other geographies this jv with a leading institutional investor who has deep experience in asia marks a key milestone in our regional growth plan charles de portes cofounder and president of esr said in a statement the deal is allianzs second in the country in two years coming on the back of a 500 million real estate fund it formed with property developer shapoorji pallonji to invest in commercial office properties in indiaon thursday esr kicked off its first project in india an industrial and logistics park in chakan midc maharashtra industrial development corporation pune it is set to open two more industrial parks and globally counts amazon alibaba and jdcom among its clientsaccording to knight frank warehousing investments in india accounted for around 26 per cent of the total private equity pe inflow into real estate between january 2014 and january 2018 around 34 billion of institutional capital came in during this period