SEOUL-- South Korea's leading asset manager Mirae Asset Global Investments Co. said Thursday it has purchased a logistics center near India's financial hub of Mumbai in the latest move to expand its portfolio in one of the world's fastest growing economies.
Earlier this month, the firm's Indian unit, Mirae Asset Global Investments India, acquired a 100 percent stake in the logistics center in Bhiwandi, an industrial town on the outskirts of Mumbai, from Indian company K-Square Park for about 1.3 billion rupees (US$15.9 million).
Mirae Asset Global Investments India has leased the 300,000-square-foot logistics center, which was built last year, to German logistics giant Rhenus.
Bhiwandi has emerged as a key logistics hub for global companies, such as Samsung, Amazon, BMW and Maersk.
It is the first time a local unit of a foreign asset management company has directly invested in the logistics business, Mirae Asset Global Investments said.
"With this investment, we will expand our investment in the logistics business in major Indian hubs, including Mumbai, in the future," Mirae Asset Global Investments said.
The move came as demand for logistics centers is surging rapidly due to the fast-paced growth in e-commerce in India and the country's rapid economic growth.
The asset management company said the logistics business in India shows high growth potential due to the lack of infrastructure, noting about 90 percent of logistics is handled by small-sized companies.
Mirae Asset Global Investments said it is also exploring more investment opportunities in logistics and data centers in major cities of India, as its Indian unit is currently searching for candidate assets. The company did not give any further details.
As of the end of 2022, Mirae Asset's Indian unit had become India's ninth-largest asset manager, with 21 trillion won ($17 billion) in assets under management, a dramatic hike from 200 billion won in 2008, when the South Korean asset management company entered the Indian market.
Source: Yonhap News Agency