Welspun One Logistics Parks, an integrated fund and development management platform that invests in warehousing and logistics real estate, said it raised Rs 1,000 crore within four months of launching its second fund.
A green-shoe option to raise an additional Rs 1,000 crore has been opened, the company said July 18. The fund could raise as much as Rs 2,000 crore upon completion of the green-shoe option, making it among the largest in the domestic real estate alternative space, the company said in a statement.
"Warehousing continues to be a high conviction area for us, and we believe the industry will grow multi-fold given the government's sustained policy focus on critical transport infrastructure, manufacturing, and consumption,” said Balkrishan Goenka, chairman of the Welspun Group. “It is heartening to see the domestic alternatives industry growing meaningfully, channelling domestic capital toward productive investments that spur economic growth and nation-building.”
With a pipeline of land in key warehousing micro-markets such as Mumbai Metropolitan Region, Chennai, Bengaluru and Lucknow in place, Welspun One Logistics Parks Fund 2 is well positioned to add 10-12 million square feet of new projects to its portfolio.
“This approach could potentially create an aggregate portfolio of 16-18 million square feet over the next 4-5 years across first and last-mile facilities in Tier 1 and 2 cities. The plan entails an overall investment outlay of over Rs 8,000 crore," the company said in a statement.
Also read: Welspun One launches Rs 2,000 crore warehousing AIF for domestic investors
The warehousing sector continues to exhibit strong growth with record high demand of 51.3 million square feet in FY23, implying a CAGR of 24 percent during FY17-23, the company said.
In terms of area, warehousing demand is almost equal to demand for offices, making it among the largest consumers of commercial real estate, it said.
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