UAE sovereign Abu Dhabi Investment Authority (ADIA) and US-based private equity firm KKR have invested an estimated Rs 128.64 billion ($1.5 billion) in the warehousing assets owned by the retail subsidiary of India’s Reliance Industries Limited (RIL), Economic Times, an Indian financial daily, reported, citing informed sources. 

The two companies jointly invested $1.5 billion, with equal shares, in Reliance Logistics and Warehouse Holdings (RLWH), which was established in December 2022 by Reliance Retail Ventures, the sources said.

In March, Reliance Retail transferred 11 to 12 million square feet of warehousing assets to RLWH, the report said. 

The investment was made through senior debt of Rs 70.75 billion, subordinated non-convertible debentures of Rs 52.75 billion while the remainder was through equity infusion, the newspaper reported.

ADIA and KKR have already invested in Reliance Retail Ventures and Jio Platforms.

In 2020, RIL raised Rs 75.58 billion from ADIA and Saudi Arabia’s Public Investment Fund by selling a 51 percent stake in Digital Fibre Infrastructure Trust, set up to monetise its fibre optic network assets.

(Editing by Seban Scaria seban.scaria@lseg.com)