Welspun One Logistics launches an alternative investment fund for warehousing worth Rs 2,000 crore

Welspun One Logistics Parks (WOLP), an integrated fund and development management platform with a focus on industrial and warehousing real estate, announced the formation of its second fund, with a total investment size of 2,000 crores, including a 1,000 crore green shoe option, on Monday.

This is India’s largest alternative investment fund (AIF) ever raised for the warehousing and logistics industry.

The WOLP Fund 1 closed in 2021, and the WOLP Fund 2 is now being funded. High net-worth investors, including well-known people and family offices, contributed Rs 500 crore to the WOLP Fund I investment.

With prospects in the tier, I and tier II locations, as well as in-city projects in Mumbai, Delhi, and Bangalore, the pan-Indian development strategy for WOLP Fund 2, aim to construct 8 to 12 million square feet overall.

In less than one and a half years after its first close, the first fund has produced a strong performance with a track record of 100% commitment across a portfolio of six assets, totaling over 6.5 million square feet. Almost 50% of the investment portfolio of the first fund is anticipated to be physically delivered, leased, and operational by the middle of 2023.

The organization places a high priority on developing and putting into place reliable procedures that will ensure high levels of governance and transparency across its operations.

It recently launched the WOLP investor portal, a first-of-its-kind service in the real estate private equity market that gives investors online access to thorough data on the assets and performance of their portfolios.

“India’s $1 trillion economy now includes the warehousing sector as a fully integrated key area. This robust asset class has attracted substantial attention from domestic investors as a result of the nation’s favorable legislative developments. According to Balkrishan Goenka, chairman of the Welspun Group, Welspun One is the only platform for storage that allows local capital to be engaged in the Indian warehouse development narrative.

In response to the strong performance of WOLP Fund 1, Welspun One Logistics Parks has decided to plan a second fund on a larger scale, providing domestic investors with access to this exciting asset class that has already attracted $5–6 billion of foreign institutional capital, according to Anshul Singhal, Managing Director.