Tata Realty and Infrastructure Ltd (TRIL) plans to invest up to Rs 10,000 crore in infrastructure projects and launch an infrastructure investment trust (InvIT), as it seeks to increase its focus on public works. As per reports, it plans to buy land with its investor partner for office projects, and build more retail shopping malls.
TRIL will invest Rs 9,000-10,000 crore over the next few years in light rail urban transport, airports, highways and roads, and ropeway projects. Also, there are plans to bid for projects mainly through the PPP route, where the company will build, maintain and collect tolls.
Also MIA Infrastructure, promoted by TRIL and French group Vinci Airports SA, is one of three shortlisted bidders for the proposed Navi Mumbai International Airport. TRIL, which has already won two new ropeway projects – Dharamsala-McLeodganj and Palchan-Rohtang – is in discussions for two more. It is also exploring two opportunities in the light rail segment.
The firm bid for road projects through the PPP model as well, and plans to acquire three road projects from a road development company.
In May, the Securities and Exchange Board of India released norms for the public issue of units of InvITs – the final set of major rules that were awaited before companies could start to market their issues.
InvITs are trusts that manage income-yielding infrastructure assets, typically offering investors regular yields and a liquid way of investing in infrastructure projects. They bring in more foreign investment in the sector, reduce the burden on bank debt and let developers unlock value of such assets.
Other infrastructure companies such as IL&FS Transportation Networks, GMR Infrastructure and MEP Infrastructure Developers are also looking to raise money and cut debt via structures such as InvITs.
Tata Realty and Standard Chartered Private Equity, with which it has a Rs 2,600 crore investment partnership, are looking to buy a 25-acre information technology (IT) special economic zone (SEZ) in Gurgaon from M3M India for about Rs 375 crore; 20-25 acre from a larger SEZ in Hinjewadi, Pune; and a piece of land in MMR.
TRIL and Standard Chartered PE inked the partnership last year, under which the two will jointly scout for new development opportunities for commercial office space, and buy brownfield projects as well. The partners will put in the money on a project-to-project basis, with Standard Chartered holding a 30 per cent stake and TRIL the rest.
Eventually, TRIL plans to have a portfolio of two projects each in Bengaluru, Chennai and Mumbai, and one in Pune, Noida, Hyderabad and Gurgaon.
According to an estimate by property advisory Cushman and Wakefield India, the assets that may qualify to be included in REITs may reach $20 billion by 2020. In the first three to five years, as much as $12 billion could be raised.