Welspun One floats second warehousing fund; eyes almost fivefold jump in AUM

By K. Amoghavarsha

  • 13 Mar 2023
Credit: 123RF.com

Welspun One Logistics Parks (Wolp), an integrated fund and development management platform focused on warehousing and industrial real estate, announced the launch of its second alternative investment fund (AIF). 

The Wolp Fund 2 will have a target corpus of Rs 2,000 crore ($243 million) with a six-year tenure and will include a green shoe option of Rs 1,000 crore. As per the platform, the company's first fund raised Rs 500 crore ($60.8 million), indicating an intent to raise its assets under management (AUM) by nearly 5x with its latest fund.

Wolp, which is a part of Welspun Group will acquire land parcels in high demand, pre-identified markets, and develop Grade-A warehousing parks which will be leased on a long-term basis to tenants across sectors. 

Its portfolio claims to have seen traction on the ground with around 50% of the portfolio expected to be physically delivered, leased and operating by mid-CY23. 

 “Our performance in Wolp Fund 1 has encouraged us to launch our second fund on a larger scale allowing domestic investors to be part of this asset class which has attracted $5-6 billion of foreign institutional capital,” added Anshul Singhal, managing director, Welspun One Logistics Parks.

As per the platform, Wolp Fund-1’s inception-to-date gross internal rate of revenue (IRR) stands at 21% basis its 30 September net asset value (NAV). 

The fund plans to expand geographically within India and undertake investment and development for about 8-12 million square feet across in-city projects in metros such as Mumbai, Delhi and Bengaluru along with other tier II cities. 

“The warehousing industry is now a priority sector in India. Welspun One is the only warehousing platform to permit domestic capital to be invested in the Indian warehousing growth story. This sector provides lucrative development returns and stable long-term yields." Balkrishan Goenka, chairman, Welspun Group said, 

360 One, (formerly IIFL Wealth & Asset Management) is on board as the key distributor of the AIF