Welspun Group buys majority stake in One Industrial Spaces; enters warehousing space
The acquisition also marks Welspun’s entry into the industrial warehousing marketPost the acquisition, One Industrial Spaces would be re-branded as ‘Welspun One Logistics Parks'
PremiumPromoters of Mumbai-based conglomerate Welspun Group have acquired a majority stake in One Industrial Spaces, an integrated real estate fund focused on warehousing sector, for an undisclosed amount.
The acquisition also marks Welspun’s entry into the industrial warehousing market.
The textile major, which also has interests in infrastructure, oil and gas among others, said the investment was made by the promoters in their personal capacity through a closely held family office investment vehicle.
“The warehousing sector presents an attractive investment proposition as it provides both development returns as well as stable long-term rental yields. Indian consumers demand same day delivery both online and offline, which has resulted in an increased strategic back-end storage requirement," said B.K. Goenka, chairman, Welspun Group in a statement.
He said the company has been looking to enter into warehousing space as demand is poised to grow aggressively.
Post the acquisition, One Industrial Spaces – the company founded by Anshul Singhal who was earlier the heading Embassy Industrial Parks, would be re-branded as ‘Welspun One Logistics Parks’.
It will also be the exclusive development manager for a portfolio of ready land assets owned by the promoters in their personal capacity with an estimated value of $50 million and development potential of over 5 million square feet of Grade-A industrial/warehousing space.
This includes a marquee 3 million square feet project in Mumbai Metropolitan Region (MMR), both the companies said in statement.
“Currently,a big challenge for existing players in this space is the land acquisition and approvals. As Welspun One, we are uniquely positioned to address these challenges. We can now leverage their (Welspun's) deep understanding and experience in buying large land parcels and successfully executing millions of square feet of industrial and infrastructure projects pan India," said Anshul Singhal, managing director, Welspun One.
The company would continue to build its core business of fund, development and asset management, which includes raising funds from domestic and foreign institutional investors to invest in the industrial asset class in India in an organized, transparent and institutional manner, he added.
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