Welspun One Logistics Parks, a pan-India asset development and management platform backed by the Welspun Group, has announced the first close of its debut fund at Rs 300 crore (around $41.4 million).
Welspun One Logistics Parks Fund I, launched in January, has a target corpus of Rs 500 crore. The first close indicates that the alternative investment fund has received commitments of up to 60% of this target.
At the time of its launch, Welspun One said the fund would have a tenure of four years and a hurdle rate of 15%. The promoter family office of Welspun group has committed Rs 75 crore ($10 million) to the fund.
While Welspun One did not disclose the identities of limited partners (LPs) to the fund, it said these consist of domestic high net-worth investors and family offices. Key distributors for this fund include Sanctum Wealth Management, Edelweiss, and InCred Wealth, the asset development platform said in a statement.
The fund, along with associated bank financing, will be used to develop Grade-A warehousing assets worth Rs 1,900 crore. This will include a flagship 2.7 million square -foot project in Maharashtra’s Bhiwandi.
The company says it expects to deliver a portfolio of seven to eight million square feet over the next three to four years in high-growth markets, including Mumbai, Pune, Bengaluru, the National Capital Region, Chennai, Kolkata, and Lucknow.
Its strategy will involve acquiring land parcels that suit its target audience and then developing Grade-A assets that will be leased on a long-term basis to companies in sectors such as e-commerce, FMCG, third-party logistics, pharma and auto-ancillaries.
“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,” Welspun Group chairman BK Goenka said.