NDR InvIT Trust, a leading player in India's infrastructure investment space, has announced the acquisition of a Grade-A industrial and warehousing portfolio spread across the markets of Surat, Hyderabad, Bengaluru, and Pune. This strategic acquisition adds 2.01 million square feet (MSF) of fully operational, high-quality assets to NDR InvIT's growing portfolio, underscoring its commitment to creating a diversified and scalable infrastructure footprint across key growth centers.
The acquisition, valued at INR 7,061 million, is expected to deliver robust returns and includes properties with 100% occupancy, marquee tenants, and a weighted average lease expiry (WALE) of 15.4 years. The transaction will be financed through a mix of cash consideration (INR 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.
Portfolio Highlights:
- Surat (0.90 MSF): Warehousing facilities leased to marquee tenants, contributing 41.6% of the portfolio's Gross Asset Value (GAV).
- Hyderabad (0.40 MSF): Built-to-suit warehouse leased to multiple tenants, comprising 9.5% of GAV.
- Bengaluru (0.33 MSF): Facility leased to NxtGen (backed by IFC and Intel), representing 31.3% of GAV.
- Pune (0.39 MSF): Built-to-suit facility for a leading automotive OEM supplier, contributing 17.6% of GAV.
The acquisition is expected to enhance NDR InvIT's consolidated GAV by 15.22%, increase its operating area by 12% to 19 MSF, and further diversify its geographic presence by entering the Surat and Hyderabad markets while strengthening its foothold in Bengaluru and Pune.
Key benefits and impact of this acquisition:
Enhanced Portfolio Metrics: Post-acquisition, the portfolio's WALE increases to 12.1 years, ensuring long-term income stability.
NAV Accretion: The acquisition is expected to deliver a 3% accretion in Net Asset Value (NAV), increasing it to INR 130.81 per unit.
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%.
High-Quality Tenants: The properties are leased to industry-leading tenants, ensuring steady cash flows and long-term lease commitments.
Mr. Amrutesh Reddy, Director, NDR InvIT Managers, said, "This acquisition marks a significant step in strengthening our portfolio with high-quality, diversified assets that align with India's infrastructure growth ambitions. As the country focuses on modernizing supply chains 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." |
