TVS ILP plans InvIT to fund growth

TVS ILP is planning for its maiden InvIT while the Indian warehousing sector is in a boom. Ramnath Subramaniam of TVS Infrastructure Investment Manager speaks about their need for InvIT, challenges and opportunities in the market.

- Libin Chacko Kurian

The Indian logistics park developer TVS Industrial & Logistics Parks (TVS ILP) is planning to launch an Infrastructure Investment Trust (InvIT) for generating growth capital for funding future growth plans of the company according to Ramnath Subramaniam, Executive Director at TVS Infrastructure Investment Manager (TVS IM).

As per plans, all the assets which are currently rent yielding in TVS ILP will be shifted to the InvIT platform and once the InvIT issue is completed every year-ready assets will be shifted to this InvIT platform," said Subramaniam.

"InvIT is an excellent investment platform created by Government of India to channelise long-term external and domestic funds to participate in hard assets that are rent yielding" he said.

TVS IM is a wholly owned subsidiary of TVS ILP and has been appointed to act as the investment manager to TVS Infrastructure Trust, an InvIT set-up as per the Securities and Exchange Board of India (SEBI) regulations.

InvITs are investment instruments that work like mutual funds and are regulated by the SEBI. In 2014, SEBI gave a nod for Real Estate Investment Trusts (REITs) and InvITs to launch in India.

Subramaniam believes that InvIT will be able to generate capital and fund TVS ILP's future growth and he spoke to Indian Transport & Logistics News (ITLN) about the challenges, opportunities and future of the Indian warehousing sector.