ADIA, KKR plow $1.5 billion into Reliance Retail’s warehousing assets: report

The UAE’s Abu Dhabi Investment Authority (ADIA) and global investment firm KKR have invested $1.55 billion (about ₹12,860 crore) in Reliance Retail Ventures Ltd’s (RRVL) warehousing assets, The Economic Times reported.

ADIA has been investing funds on behalf of the Abu Dhabi government since 1976.

The acquisition of the assets was financed through senior debt of ₹7,075 crore ($848 million), non-convertible debentures (NCDs) of ₹5,275 crore ($632 million), and the remaining through equity infusion, ET reported, citing unidentified company officials.

Reliance Projects and Property Management Services Ltd (RPPMSL), a wholly owned subsidiary of Reliance Industries Ltd, will handle the operations and maintenance of assets.

The investment is separate from the infrastructure investment trust, or InvIT, established by RRVL last year, which reportedly planned to take over half of its retail warehousing assets.

In March, RRVL transferred 11-12 million sq. ft of warehousing assets to Reliance Logistics Warehouse Holdings (RLWH), established in December 2022. KKR and ADIA will invest $1.5 billion in this entity equally, the report said, adding that the transaction has yet to be formally announced.

ADIA and KKR have also invested in Jio platforms that run RIL’s digital and telecom businesses.