Welspun One Logistics Parks, an integrated fund, development and asset management platform backed by the USD 2.7 billion Welspun Group has raised upwards of INR 300 crore from a set of investors comprising of domestic high-net-worth investors and family offices towards the first close of its Alternative Investment Fund (AIF) “Welspun One Logistics Parks Fund I”. Launched early this year, this is India’s first warehousing AIF for domestic investors; key distributors of which are Sanctum Wealth Management, Edelweiss and InCred Wealth.
The amount raised is a part of its INR 500 crore maiden fund which when fully raised, along with associated bank financing will enable Welspun One to develop Grade-A warehousing assets worth INR 1,900 crore; including its flagship 2.7 million square feet project in Bhiwandi which is currently underway. In total, the company expects to deliver a portfolio with an estimated leasable area of 7 to 8 million square feet over the next 3 to 4 years in pre-identified high growth markets such as Mumbai, Pune, Bangalore, NCR, Chennai, Kolkata and Lucknow.
Welspun One’s investment strategy is focused on sourcing and developing feasible land parcels which suit institutional investors and get leased by valued occupiers, whilst maintaining high levels of compliance, safety and zero tolerance to regulatory lapses across the project lifecycle.
BK Goenka, Chairman, Welspun Group said “Led by an experienced team, Welspun One’s unique proposition of being an integrated platform which is able to execute deals from acquisition to development, leasing and divestment has resonated well with investors; as it mitigates some of the key concerns associated with similar products in the past.” He added, “we continue to be very bullish about this sector and are keen to meaningfully increase our allocation of capital through the Welspun One platform.”
“Being the first mover in announcing a warehousing fund that focuses on domestic investors and achieving a strong first close of 60% of our target fund size is a milestone for us at Welspun One. This puts us firmly on track to deliver at least a million square feet of space by the end of this year followed by more than two million square feet annually.” said Anshul Singhal, Managing Director, Welspun One Logistics Parks.
Accelerated adoption of e-commerce, same day or next day delivery commitments fulfilled by third-party logistics companies, and the need to diversify supply chain backed by a favourable regulatory backdrop along with the announcements of the Union Budget 2021 are further expected to boost the infrastructure spend and in turn the overall demand for modern warehousing in the future.
