Welspun One raises over 500 rupees through the camp fund

Welspun One Logistics Parks (WOLP), an integrated fund and development management platform focused on warehouse and industrial properties, has raised over Rs.500 crore through the first closing of its second Alternative Investment Fund (AIF), WOLP Fund 2.

The fund raised the money from domestic high net worth and family office investors within eight weeks of its launch in March. The aim is to raise a total stock of Rs. 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.

“The government’s proactive policy stance coupled with rising consumption, exponential e-commerce growth and continued manufacturing expansion make the sector well positioned to achieve exponential growth over the next few years.” We are pleased to launch our ambitious national development plan, which not only provides the country with much-needed infrastructure, but also provides attractive returns for our investors,” said Balkrishan Goenka, Chairman of Welspun Group.

Together with the project level leverage, the fund’s total holdings are expected to provide the fund with sufficient dry powder to invest in projects requiring an outlay of over Rs 6,000 crore.

The speed of the increase underscores strong investor confidence in both the platform and the prospects of the storage and industrial sectors in the country.

“The strong investor response over a short period of eight weeks is something of a record in the alternative investment space. This success demonstrates not only the confidence that investors have placed in us, but also the increasing depth of capital of domestic investors willing to support new-age ideas and infrastructure,” said Anshul Singhal, Managing Director of Welspun One Logistics Parks.

WOLP Fund 2 has a pan-India development plan targeting a total development of approximately 10-12 million square feet based on opportunities in Tier I and Tier II cities and inner-city projects in Mumbai, Delhi and Bangalore.

This second fund is the successor to WOLP Fund 1, a SEBI-regulated AIF for domestic investors that launched in 2021. WOLP Fund 1 had raised Rs.500 crore from a range of wealthy investors including notable individuals and family offices.

The first fund, WOLP Fund 1, which launched in early 2021, has since been fully invested in a portfolio of 6 projects across India totaling 6.5 million sqft of prime warehousing and industrial space.

The WOLP Fund 1 investment portfolio is very popular locally. Approximately 50% of these are expected to be physically delivered, leased and operational within two years of its inception.

The portfolio is pre-let to large and established tenants including Delhivery, Flipkart, FM
Logistics, Tata Croma, Ecom Express, among others, with transparency in the rental of the balance sheet portfolio.

The second fund is expected to add an additional 10 to 12 million square feet of new projects to this footprint, bringing Welspun One’s total portfolio to 16 to 18 million square feet over the next 4 to 5 years.

In India, a favorable regulatory environment and government support for policies and reforms have started to boost infrastructure spending and hence aggregate demand for modern warehousing.

According to a recent study, the continued surge in demand driven by accelerated manufacturing investment, aggressive expansion of e-commerce and growth of third-party logistics (3PL) companies have helped warehouse rents to rise in India’s key logistics real estate markets.

The rise in rental values ​​has catapulted Indian cities like Mumbai, Bangalore and Delhi-National Capital Region (NCR) into the list of top ten logistics markets in Asia-Pacific based on 2022 performance and robust 2023 outlook.

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