NDR InvIT Trust

active

 The proposed investment is a senior secured loan of up to US$150mn equivalent in INR to NDR InvIT Trust (“the InvIT” or “NDR” or “the Client”), a AAA-rated entity that is India's first and largest warehousing infrastructure investment trust (“InvIT”) with a market capitalization of ~US$481mn as of October 2024.The InvIT's sponsor and principal shareholder is NDR Warehousing Private Limited, (“NDRWPL” or “the Sponsor”), one of the largest developers of greenfield warehousing space in India. The sponsors of NDR Group previously owned Continental Warehousing Corporation Nhava (Seva) Limited., an IFC debt and equity client that was subsequently acquired by DP World and NIIF.The InvIT's second largest shareholder is Investcorp, one of the leading global investors in logistics. IFC's investment will be used to: i) expand the InvIT's capacity to acquire additional warehousing space from the Sponsor's development company as well as from third-party developers; ii) replace legacy debt at the Special Purpose Vehicle (SPV) level with long-term debt at the InvIT level. The InvIT's business model is to own and manage warehouses where the construction is complete and customer contracts have been secured, i.e., it does not take construction risk or initial capacity utilization risk. The warehouses are owned by SPVs that are in turn wholly owned by the InvIT.The NDR InvIT currently owns and manages ~17 mn square feet (sq. ft) of warehousing space across 13 locations in India, making it one of the top warehouse operators in the country. NDR warehouses are generally located close to India's big cities like Chennai, Mumbai, Delhi, and Bangaluru, among others, where good highways and have encouraged other factories and industrial parks to set up. This warehousing space is contracted out on long-term contracts with a fixed payment stream to a diversified set of over 80+ national and international customers.NDR InvIT lease agreements specify that the InvIT, through the Project Manager, is responsible for provision and maintenance of the following common infrastructure and associated services: 1) Fire safety (water storage, pumps, sprinklers, and hoses); 2) Housekeeping / landscaping of common areas; 3) Water Supply – borewell and pump; 4) Grid energy connections; 5) security provisions for the park ; 6) Internal roads, parking; and 7) Sewage treatment plant (STP). The InvIT tenants are responsible for everything else related to their business activities, including provision of equipment and machines, implementation of E&S management programs etc.