7 Mar 2024
Investcorp, a leading alternative investment firm, has announced that its portfolio company NDR Warehousing Private Limited, has successfully listed NDR Infrastructure Investment Trust (“NDR InvIT / Trust”), on the National Stock Exchange of India as the first perpetual warehousing and industrial parks infrastructure investment trust (“InvIT”) (REIT equivalent).
The IPO of the NDR InvIT was launched, fully subscribed, and closed, on the same day with aggregate proceeds of $106 million, a combination of Offer for Sale of $23 million and Primary issue of $83 million. The shares were listed on the National Stock Exchange at a premium of 4% to the issue price.
The IPO saw participation from several marquee investors including wealth funds, institutional investors, insurance firms and family offices. It was completed at a post-money equity valuation of approximately $465 million, with Investcorp owning 21% equity in the NDR InvIT, while also owning 20% equity of the investment manager of the Trust, namely NDR InvIT Managers Private Limited. The Trust will commence making cash flow distributions for the current quarter.
Investcorp Co-CEO Rishi Kapoor said, “India has been a remarkable growth story for Investcorp. As we celebrate the fifth anniversary of our operations in this fast-growing economy, the Indian logistics and warehousing sector continues to offer significant opportunities that provide an attractive risk-return profile to our investors. The successful listing of India’s first Warehousing and Industrial Parks investment trust by NDR reflects the potential for significant growth in this space. NDR is a market leader with a 30-year track record of successfully building a well-diversified warehousing platform across India.”
The NDR InvIT has a portfolio of strategically located assets in high performing warehousing submarkets across India in 12 cities. According to Investcorp, the trust is demonstrating strong growth prospects through a combination of increased demand, contracted revenue, re-leasing, and new construction to accommodate tenant expansion.
As one of the fastest growing major economies in the world, India is a strategic priority for Investcorp with the firm planning to increase its AUM in the country to $5 billion over a medium-term horizon.
Investcorp has been actively investing in the warehousing sector globally for many years now and has built an impressive portfolio of high-value assets in the sector, primarily in the US and UK. In 2023, following the launch of its GCC real estate platform that aims to invest up to $1 billion in the GCC real estate market, Investcorp made its first real estate acquisition in Saudi Arabia, investing in a state-of-the-art, temperature-controlled warehouse, taking Investcorp’s global warehousing & logistics investments to over $4 billion.
Investcorp is also active in the mid-market private equity space in India and has invested across the consumer tech, healthcare, financial services, retail, SaaS, e-commerce, and technology sectors. Its investments over the last five years include Intergrow Brands, Freshtohome, Zolo Stays, InCred Finance, Citykart, Wakefit, InsuranceDekho, NephroPlus, Unilog, and XpressBees.