Welspun One’s second warehousing-focused fund raises ₹1,000 crore

New Delhi: Welspun One Logistics Parks, an integrated fund and development management platform that invests in warehousing and logistics real estate, on Tuesday said it raised ₹1,000 crore within four months of launching its second fund.

The company also announced a green shoe option to raise an additional ₹1,000 crore.

The potential corpus could reach ₹2,000 crore upon completion of the green shoe option, which would then rank it among the largest in the domestic real estate alternatives space, the company said in a statement.

“We are deeply grateful to our investors for their unwavering faith in us, which has powered our successful second fund-raise,” said Anshul Singhal, managing director at WOLP.

With a pipeline of land in key warehousing micro-markets such as Mumbai Metropolitan Region, Chennai, Bengaluru and Lucknow in place, Welspun One Logistics Parks Fund 2 is well placed to add 10-12 million square feet of new projects to its portfolio.

“This approach could potentially create an aggregate portfolio of 16-18 million square feet over the next 4-5 years across first and last-mile facilities in Tier 1 and 2 cities. The plan entails an overall investment outlay of over ₹8,000 crore, which will propel Welspun One to an Assets under management (AUM) of $1 billion,” the company said in a statement.

The warehousing sector continues to exhibit strong growth with record high demand of 51.3 million square feet in FY23, implying a CAGR of 24% during FY17-23, the company said.

In terms of area, warehousing demand is almost equal to demand for offices, making it among the largest consumers of commercial real estate, it added.

“Warehousing continues to be a high conviction area for us, and we believe the industry will grow multi-fold given the government’s sustained policy focus on critical transport infrastructure, manufacturing, and consumption,” said Balkrishan Goenka, chairman of the Welspun Group. “It is heartening to see the domestic alternatives industry growing meaningfully, channeling domestic capital toward productive investments that spur economic growth and nation-building.”