Mumbai, January 21, 2025: A Grade-A industrial and warehouse portfolio spanning the markets of Surat, Hyderabad, Bengaluru, and Pune has been acquired by NDR InvIT Trust, a prominent participant in India’s infrastructure investment sector. This tactical The acquisition highlights NDR InvIT’s dedication to building a broad and scalable infrastructure footprint across important growth centres by adding 2.01 million square feet (MSF) of fully functional, high-quality assets to its expanding portfolio.
The INR 7,061 million purchase, which consists of buildings with 100% occupancy, well-known tenants, and a weighted average lease expiration (WALE) of 15.4 years, is anticipated to provide strong returns. A combination of monetary consideration (INR) and other forms of payment will be used to fund the deal. 5,651 million) and a preferential issue (INR 1,410 million), which will see 11.01 million units allotted at INR 128 per unit, representing a 21.6% premium over the trade price.
Highlights of the portfolio:
● Surat (0.90 MSF): 41.6% of the portfolio’s Gross Asset Value (GAV) comes from warehousing facilities leased to high-profile clients.
● Hyderabad (0.40 MSF): A custom-built warehouse that is rented to several clients, including 9.5% of GAV.
● Bengaluru (0.33 MSF): 31.3% of GAV is leased to NxtGen, which is supported by IFC and Intel.
● Pune (0.39 MSF): 17.6% of GAV is contributed by this built-to-suit plant for a major car OEM supplier.
It is anticipated that the purchase would raise NDR InvIT’s operational area by 12% to 19 MSF, improve its consolidated GAV by 15.22%, and further diversify its geographic footprint by breaking into the Hyderabad and Surat markets while fortifying its position in Bengaluru and Pune.
Principal advantages and effects of this purchase:
1.Improved Portfolio Metrics:
The portfolio’s WALE rises to 12.1 years after acquisition, guaranteeing steady income over the long run.
2.NAV Accretion:
A 3% increase in Net Asset Value is anticipated as a result of the transaction. (NAV), raising the price per unit to INR 130.81.
3.Income Growth:
An 8.7% cap rate on FY 2026 NOI underscores the accretive nature of the transaction, with net distributable cash flow (NDCF) per unit anticipated to increase by 0.5%.
4.High-Quality Tenants:
The properties are leased to industry-leading tenants, ensuring steady cash flows and long-term lease commitments.
“This acquisition represents a significant step in strengthening our portfolio with high-quality, diversified assets that align with India’s infrastructure growth ambitions,” stated Mr. Amrutesh Reddy, Director, NDR InvIT Managers. As the nation works to update its supply systems under
initiatives like the Gati Shakti National Master Plan and the ‘Make in India’ campaign, these strategic investments reaffirm our commitment to advancing the warehousing and industrial sectors while delivering long-term stable returns to our stakeholders. By expanding into key markets such as Surat and Hyderabad, we are well-positioned to address the rising demand for world-class industrial and logistics infrastructure.”