TVS IL&P InvIT

pending

IFC has invested (i) INR 3,480 million (equivalent to ~US$40.7 million) of equity by way of subscription to units issued by TVS Infrastructure Trust (“TVS InvIT”/”InvIT”), representing a stake of 17.65 percent.. The InvIT has been set up under Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 (“SEBI InvIT Regulations”) by TVS Industrial & Logistics Parks Pvt. Ltd (the “Sponsor”) part of the TVS Mobility Group in India. TVS ILP is part of the TVS Mobility Group of companies, a large Indian conglomerate with diversified business interests, and one of the largest warehousing platforms in India with a 20-year track record in the infrastructure sector. TVS ILP is also the Project Manager of the InvIT trust. As Project Manager to the InvIT, TVS ILP will support the InvIT on warehouse operations and maintenance, record-keeping, and compliance with SEBI and other statutory regulations. Another TVS company, TVS Infrastructure Investment Manager Private Limited (TVS IIM) will act as the Investment Manager of the TVS InvIT Trust. TVS IIM is responsible for making investment and management decisions about all TVS Infrastructure Trust assets. The InvIT’s business model will be to primarily own and operate warehouses where construction is complete and customer contracts have been secured, thereby avoiding greenfield construction risk and initial capacity utilization risk. Initially, the InvIT will own and operate an operational asset portfolio of 10.6 million sq.ft. spread across 14 locations and 18 assets in key micro-markets in India. Around 80% of the platform’s assets are located in Tamil Nadu; the balance is spread across Maharashtra, Andhra Pradesh, Odisha and West Bengal. Subsequently, the InvIT will continue to acquire additional warehousing space in India. TVS offers mid to large scale (0.4-1.5 million sq.ft.) Grade A warehouses that meet the requirements of a large gamut of Clients, including, but not limited to, third-party logistics, e-commerce, manufacturing and assembly companies.TVS InvIT lease agreements specify that the InvIT, through the Project Manager, is generally 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) Common area security and lighting provisions; 6) Internal roads, parking; and 7) Sewage treatment plant (STP). The InvIT tenants are generally responsible for everything else related to their business activities, including provision of specialized equipment and machines, recruiting and employing their own workers, implementation of site-specific E&S management programs, including compliance with all safety and health regulations within their leased premises.