TVS Mobility Group arm to soon file draft papers for $150-million warehouse InvIT

TVS Mobility Group arm to soon file draft papers for $150 million warehouse InvIT

TVS Industrial and Logistics Parks Pvt Ltd (TVS ILP), an arm of the TVS group's logistics business TVS Supply Chain Solutions, is expected to soon file the draft papers for its maiden infrastructure investment trust (InvIT), which will house its operating warehouse assets, sources told Moneycontrol.

TVS IPL is engaged in developing and leasing of industrial warehousing facilities and logistics infrastructure parks. Its current portfolio is spread across six states and caters to clients from sectors such as automobiles, FMCG, e-commerce and agriculture. It is a part of the TVS Mobility Group.

TVS ILP aims to raise around $150 million through the InvIT, the sources added.

“The company is looking to file the draft papers for the InvIT with the (market regulator) Securities Exchange Board of India, by next month. (Investment banks) Axis Capital and Kotak Mahindra Capital are advising TVS ILP on this fundraise,” said one of the sources.

The company has a portfolio of around 7.5 million square feet of operational warehousing space, a significant portion of which will be put under the InvIT, the source added.

An email sent to TVS ILP and TVS Supply Chain Solutions did not elicit a response.

TVS ILP was started in 2005 as a 50:50 joint venture between TVS Supply Chain Solutions Ltd and Ravikumar Swaminathan & Associates. In March 2021, the UK government’s development finance arm CDC Group, now known as British International Investments, infused equity capital of Rs 250 crore and acquired a 40 percent stake in the company.

After multiple InvITs in the roads and renewable energy sector, warehouses have emerged as the next asset class for such yield generating trusts.

In February this year, NDR InvIT Trust, an infrastructure investment trust set up by NDR Warehousing and Bahrain-based investor Investcorp, raised Rs 880 crore from investors.

Also Read: Investcorp makes Rs 500 crore follow-on investment in NDR Warehousing

The InvIT manages 33 warehouses with a total leasable area of 16.91 million square feet.

The Indian warehouse sector has seen investments by several prominent investors such as Blackstone, Morgan Stanley, Everstone, CPPIB and Investcorp in the last few years.