London-based investment management company Lingotto Investment Management LLP has entered a strategic partnership with TVS Industrial and Logistics Parks (TVS ILP) as it buys out the existing investor British International Investment’s 21% stake in the company in a deal valued around INR 245 crore.
The partnership has been set in motion through a secondary stake sale by an existing investor, British International Investment (previously CDC) – the UK’s development finance institution, said TVS ILP, part of TVS Mobility Group.
This secondary transaction has taken place at an enterprise value of INR 2,800 crore.
“Our vision is to create tech enabled infrastructure solutions to the warehousing and logistics parks industry. We have delivered robust growth for nearly two decades due to evolving customer demands for more sustainable and innovative products. Now is the time to bring the company to the next level by strategically investing in its future,” sadi Ravi Swaminathan, Vice Chairman of TVS Industrial and Logistics Parks.
The transaction comes on the back of TVS Supply Chain Solutions divesting around 4.5% stake through a secondary stake sale to Lingotto for INR 51.3 crore in September.
Logistics infrastructure and warehousing company TVS Industrial and Logistic Parks is set to double its portfolio to 20 million sq ft by 2027, with investment of USD 400 million. The company currently has portfolio spanning 10 million sq ft and aims to generate USD 100 million in contracted revenue per year over the next five years.
“TVS ILP is now poised for the next phase in its pan-India growth, and we are excited to join the company to accelerate their growth trajectory. We look forward to working closely with TVS ILP,” said Ashish Kaushik, Partner, Lingotto.
Currently, TVS ILP has a presence across six locations including Coimbatore, Hosur, Madurai, and the outskirts of Chennai. In 2021, the company raised Rs 250 crore through a 40% stake sale that CDC picked up.
Lingotto Investment Management LLP is wholly owned by Exor NV, one of Europe’s largest diversified holding companies, and is authorised and regulated by the Financial Conduct Authority.
“Our partnership with TVS ILP is a great example of how BII invests for positive social and environmental outcomes. Together, we have helped to create job opportunities and promote green building practices across all of TVS ILP’s warehouses, resulting in lower energy and water consumption and reduction in greenhouse emissions. As we welcome Lingotto to the partnership, we remain committed to supporting TVS ILP’s growth as a leader in the integrated warehousing sector,” said Srini Nagarajan, MD & Head of Asia at British International Investment (BII) Group.
TVS ILP claims to be the first corporate developer leading the path in Grade A warehousing since its inception in 2005 with facilities in pan-India and boast of a 20 million sq ft platform with more than 98% occupancy. The company has a diverse clientele encompassing industry leaders in sectors such as FMCG, FMCD, CDE, 3PL’s, Ecommerce and many more.
