NDR InvIT Trust has taken a significant step in expanding its logistics footprint by acquiring a premium warehousing and industrial portfolio worth ₹706.1 crore. This strategic acquisition adds 2.01 million square feet of Grade-A industrial and warehousing space across key cities, including Surat, Hyderabad, Bengaluru, and Pune. The move not only boosts the company’s operational scale but also diversifies its geographical presence in India’s fast-growing warehousing sector.
Surat Warehousing Space Becomes Key Asset
A major highlight of the acquisition includes a 900,000 square feet warehousing space in Surat, which contributes 41.6% to the portfolio’s Gross Asset Value (GAV). This facility enhances NDR InvIT’s presence in Gujarat, a key logistics hub for domestic and international trade. With this addition, the company strengthens its ability to cater to growing warehousing demands, particularly in e-commerce, manufacturing, and retail sectors.
Financing Structure and Premium Pricing
The transaction involved a combination of cash and equity units, showcasing the company’s strategic financial planning. NDR InvIT paid ₹565 crore in cash while raising ₹141 crore through a preferential issue of units. The company allotted 11.01 million units at ₹128 per unit, representing a 21.6% premium over the trade price. This pricing demonstrates strong investor confidence in NDR InvIT’s long-term growth potential and strategic direction.
High Occupancy and Long-Term Lease Commitments
All acquired properties enjoy 100% occupancy, ensuring stable rental income and strong financial returns. The portfolio boasts a weighted average lease expiry (WALE) of 15.4 years, highlighting long-term commitments from reputable tenants. This high occupancy rate significantly reduces vacancy risks while ensuring a steady revenue stream for the trust. With industry leaders as tenants, NDR InvIT reinforces its position as a preferred partner for businesses seeking reliable warehousing solutions.
Expanding Geographic Footprint and Market Penetration
This acquisition not only increases NDR InvIT’s total operating area by 12% but also enhances its geographic reach. The trust enters the Surat and Hyderabad markets for the first time, adding new opportunities for growth and market penetration. At the same time, it strengthens its existing presence in Bengaluru and Pune, two of India’s most dynamic industrial and warehousing hubs. By strategically diversifying its portfolio, the company mitigates risks associated with market fluctuations in any single region.
Expected Impact on NDR InvIT’s Growth
With this latest transaction, NDR InvIT’s consolidated Gross Asset Value (GAV) rises by 15.22%, reflecting the growing scale of its operations. The expansion aligns with the company’s long-term vision to establish itself as a leader in the warehousing and industrial real estate sector. As demand for logistics infrastructure surges, this acquisition positions NDR InvIT to capitalize on emerging opportunities while delivering value to investors and stakeholders.
Conclusion: A Game-Changing Move in the Warehousing Sector
NDR InvIT’s ₹706.1 crore investment in warehousing and industrial assets marks a major milestone in its growth strategy. By securing premium properties with long-term lease commitments and high occupancy rates, the company strengthens its financial and operational resilience. With strategic market expansion, a well-structured financing plan, and strong investor confidence, NDR InvIT cements its position as a dominant player in India’s logistics infrastructure sector. This move sets the stage for further growth, unlocking new opportunities in India’s booming warehousing industry.
