Singaporean sovereign wealth fund GIC and real estate investment manager ESR Group have formed a $600 million joint venture to buy profitable industrial and logistics assets in India, they said in a joint statement last week.

The new joint venture, which is 80% owned by GIC, is an extension of an existing partnership between the entities in India. It will invest in "stabilized operating assets" in the country's tier 1 and tier 2 cities.

A large number of Indian companies, including logistics company Blue Dart Express and personnel solutions provider Quess, have expanded into metros and smaller cities to meet the demand for online shopping.

GIC and ESR expect industrial and logistics assets to outperform other real estate and infrastructure assets over the medium term due to the surge in online shopping and retail purchases.

“India is on the cusp of a supply chain transformation, supported by automation, digitalization and favorable government policies,” said Abhijit Malkani, chief executive officer of ESR India in the statement.