Welspun One’s second fund raises ₹2,275 crore, to focus on warehousing assets

                Welspun One, an integrated fund and warehouse development company of Welspun Group, has raised Rs 2,275 crore for its second fund. This is the largest domestic fundraise in the 
warehousing space, the company said on Monday.

The capital was sourced from nearly 800 limited partners or investors, including high-net-worth and ultra-high-net-worth individuals, family offices, corporates, and domestic 
institutions.
Combined with its first fund, which raised nearly Rs 500 crore in early 2021, Welspun One’s investor base now comprises of approximately 1,000 investors. Its Fund 2 has committed 
nearly 40% of investible capital across four investments, and anticipates committing the remaining over the next three-four quarters, given a robust pipeline of deals.

This will add 8 million sq ft to Welspun One’s existing portfolio of ~10 million sq ft, taking their aggregate portfolio to ~18 million sq ft and entailing total project outlay of $1 billion. 
Welspun One’s focus for Fund 2 is on new-age warehousing assets, such as urban distribution centres, cold chain, agro logistics, and port and airport-based logistics, it said.

“These niche sectors offer the potential for superior returns due to low existing supply, strong demand and growth, but limited competition,” it said. Some of the deals are a mixed-use 
urban logistics development in Thane near Mumbai of close to 1 million sq ft with an estimated cost of Rs 600 crore, and a partnership with the Jawaharlal Nehru Port Authority (JNPA) 
to develop industrial and warehousing infrastructure in the JNPA special economic zone. This project has a development potential of nearly 1.3 million sq ft at an estimated cost of Rs 
700 crore.

To date, Fund 1 is fully committed with six investments, aggregating to a development potential of nearly 7.2 million sq ft across 300 acres in five cities. About 50% of this has already 
been delivered, with the remaining scheduled for delivery over the next four to six quarters, it said .
Fund 1 recently delivered its first exit via the sale of its investment in a 0.3 million sq ft park in NCR, sold to an Asia-focused logistics REIT in a transaction valued at Rs 90 crore.

Welspun World is looking to streamline logistics operations and stimulate industrial growth through strategic investments in essential infrastructure, according to chairman Balkrishan 
Goenka.



Source : The Economic Time