NDR InvIT Trust has bought a 900,000 square feet warehousing and industrial park in Surat from a consortium of Mumbai-based developers.
The acquisition is in line with its plan to expand into western India's logistics market, the warehousing InvIT said in a statement on March 3, without disclosing the deal value.
The transaction was funded with a mix of cash and vesting the trust's units with the shareholders of the industrial park, property consultants JLL, which was the transaction adviser to the deal, said in a statement.
"This acquisition marks a significant milestone in our expansion strategy. Surat's strategic location and its growing significance in India's industrial landscape make this a valuable addition to our portfolio," said Daljit Singh, marketing director for NDR InvIT Managers, which acts as the manager of NDR InvIT Trust.
The company had in January announced a Rs 706-crore investment plan to acquire fully leased warehousing assets in Surat, Pune, Bengaluru, and Hyderabad markets.
According to sources, the Surat warehousing facility has been leased out to clients such as bathware firm Kohler, electronics major Croma, and chemicals firm Lubrizol.
NDR InvIT Trust, sponsored by family-owned firm NDR Warehousing, has received funding from entities such as Bahrain-based InvestCorp, World Bank Group-owned IFC, and the Union government-backed National Bank for Financing Infrastructure and Development (NaBFID), through both equity and debt instruments.
At the end of the December quarter, NDR InvIT Trust's assets under management were at around 19 million square feet, regulatory filings show.
The location of the warehouse, along the "Golden Quadrilateral", provides easy access to major markets such as Vadodara and Ahmedabad, besides connectivity to Surat city, JLL and NDR InvIT Trust said.
"This recent InvIT warehouse buyout is a game-changer, exemplifying the synergy between local expertise and national capital. It's a testament to how InvITs can reshape the industry landscape, driving consolidation, boosting efficiency, and unlocking value," said Lata Pillai, senior managing director and head of capital markets at JLL India.
This deal is a blueprint for the future of India's warehousing sector, offering a win-win scenario for regional operators, investors and the broader economy alike, she said.
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