The platform, backed by the $2.7 billion Welspun Group, is targeting total investment of around Rs 2,000 crore in the next 3-4 years. As a part of its investment outlay, the company plans to develop and lease a portfolio of 7 – 8 million square feet of grade-A warehousing spaces across India.

Welspun One Logistics Parks, a pan-India integrated fund, development and asset management platform, has achieved the first close of over Rs 300 crore India’s maiden warehousing alternate investment fund (AIF), Welspun One Logistics Parks Fund I.

The fund has achieved this first close with response from corporates, family offices and high networth individuals within two months of its launch.

The platform, backed by the $2.7 billion Welspun Group, is targeting total investment of around Rs 2,000 crore in the next 3-4 years. As a part of its investment outlay, the company plans to develop and lease a portfolio of 7 – 8 million square feet of grade-A warehousing spaces across India.

“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,” said BK Goenka, Chairman, Welspun Group. “We continue to be very bullish about this sector and are keen to meaningfully increase our allocation of capital through the Welspun One platform.”

Currently, the fund is in advanced discussions with land owners in pre-identified high-growth cities including Mumbai, Pune, Bangalore, Delhi, Kolkata for land parcels ranging between 40 and 75 acres. The fund is expected to build a total warehousing portfolio of 300-400 acres.

“Being the first mover to plan and raise 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.

The amount raised is a part of its Rs 500 crore maiden fund which, when fully raised along with associated bank financing, will enable Welspun One to develop Grade-A warehousing assets worth Rs 1,900 crore; including its flagship 2.7-million-sq-ft project in Bhiwandi which is currently underway.

Out of the total size of Rs 500 crore, balance Rs 200 crore fund raising is also expected to be concluded soon as the discussions for the same are also at an advanced stage. The entire fund, which is the country’s first warehousing AIF for domestic investors, is likely to be deployed in the next 12-18 months.

The platform is planning to invest in acquisition of land parcels in high demand, pre-identified markets, and develop grade-A warehousing parks. These parks will be leased on a long-term basis to tenants from sectors such as e-commerce, FMCG, third-party logistics (3PLs), pharma and auto-ancillaries.

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 is pushing demand for warehousing and logistics. A favourable regulatory backdrop along with the announcements of the Union Budget 2021 is further expected to boost the infrastructure spend and in turn the overall demand for modern warehousing hereon.

https://realty.economictimes.indiatimes.com/news/allied-industries/welspun-one-logistics-achieves-first-close-of-indias-maiden-warehousing-fund/81513438