Welspun One betting big on Indian warehousing sector

Welspun One Logistics Parks (WOLP), integrated fund and development management platform focussed on warehousing and industrial real estate, is planning to raise its second fund of INR 2,000 crore, including a green shoe option of Rs 1,000 crore. This is the largest alternative investment fund (AIF) being raised for the warehousing and logistics sector in India.

Welspun One Logistics Parks Fund 2 follows the WOLP Fund 1 (INR 500 crore), a SEBI-regulated AIF for domestic investors, which was raised in 2021. This second fund will be used towards warehousing infrastructure development in tier-1/tier-2 cities across India, and in-city projects in metros like Mumbai, Delhi and Bengaluru. WOLP Fund 2 will attract domestic investors to the sector, adding on to the pre-existing foreign institutional capital of more than USD 5 billion.

“Welspun One is the only warehousing platform to permit domestic capital to be invested in the Indian warehousing growth story,” said Balkrishan Goenka, Chairman, Welspun Group.

Goenka also said that the warehousing industry, over time, has become a fully integrated priority sector in India on the back of favourable policy changes, which has also bought diverse investment into the sector.

Also Read: Welspun One signs MoU with Government of Uttar Pradesh to invest INR 2,000 crores

The first fund has delivered robust performance with a track record of 100% commitment across a portfolio of 6 investments, aggregating to around 6.5 million sq ft within nearly 1.5 years from its first close. These investments are spread over five cities including the Mumbai Metropolitan Region (MMR), the National Capital Region (NCR), Bangalore, Chennai, and Lucknow.

The portfolio is pre-leased to large and established tenants including Delhivery, Flipkart, FM Logistics, Tata Croma, Ecom Express amongst others with visibility on leasing of the balance portfolio.

In addition to its current projects, Welspun has an active pipeline of 600 acres of land, aggregating to 13 million sq ft of development potential. It has also signed pacts with multiple state governments, including Haryana, Karnataka, and Tamil Nadu, to develop Grade A warehousing facilities.

The WOLP investor portal is a first-of-its kind offering in the real estate private equity space that provides investors with online access to comprehensive information on their portfolio assets and performance.

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