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ESR Group Limited, a prominent player in APAC's real asset management arena, has made a significant move by acquiring 57 acres of land in Cuttack. This land holds immense development potential, totalling 1.2 million square feet. ESR has committed around Rs 360 crore to construct and develop the ESR Cuttack Logistics Park, the region's sole institutional-grade facility with Grade A specifications. Strategically positioned in Odisha's eastern part, ESR Cuttack Logistics Park addresses a scarcity of large, scalable development sites. This strategic move marks ESR's expansion into Odisha, following its first asset in Kolkata, ESR Uluberia Logistics Park. ESR Cuttack Logistics Park already includes one operational building, fully leased and occupied by a major Indian e-commerce company. Construction of a second building is underway, with plans for a total of six buildings in the park.
Situated within North Cuttack's thriving warehousing hub, the new logistics park complements and fuels the region's rapid economic growth. Cuttack and Bhubaneswar, the twin cities, are pivotal in driving Odisha's economic expansion. Industries like IT/ITES and manufacturing, along with abundant resources, have turned these cities into essential trading centres. The demand for logistics facilities has surged due to Odisha's robust Gross State Domestic Product (GSDP) growth, which has averaged 7.9% annually over the past decade (excluding the COVID-19 year of 2020–21). Increasing incomes, growing purchasing power, and the proliferation of digital technologies are additionally fuelling the demand for warehousing. These factors are driving industries such as third-party logistics (3PLs), e-commerce, retail, consumer goods, durables, paints, chemicals, automobiles, and ancillaries.
Abhijit Malkani, CEO of ESR India, emphasized the park's role in reshaping expansion for e-commerce, retail, and 3PL customers. The growing online and retail consumer base in Odisha prompted ESR's expansion in the region, offering a top-tier facility with green building features. ESR Cuttack Logistics Park aims to revolutionize warehousing by enhancing logistics efficiency in the micro-market to meet evolving business needs. Aligned with ESR's human-centric approach, the park will integrate the 'ESR smart mobile app' to enhance client experiences and digital park management. It will also prioritize sustainability by seeking certification from the Indian Green Building Council (IGBC) and implementing energy- and water-efficient designs to reduce environmental impact and operational costs for clients.
As of June 30, 2023, ESR stands at the forefront with a whopping US$13.0 billion in development work-in-progress, the most substantial development workbook across APAC. The first half of 2023 witnessed ESR setting records, with a remarkable US$3.8 billion in development starts and the successful delivery of US$2.2 billion in completions. These achievements underscore ESR's ability to deliver on a grand scale. ESR India, a key component of the ESR Group, continues to shine as a premier developer and manager of industrial and logistics real estate. As of June 30, 2023, their assets under management (AUM) stood proudly at approximately US$1.6 billion, encompassing a vast 2.4 million square metres of gross floor area.
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