Welspun One Logistics Parks (WOLP), an integrated fund and development management platform with a focus on warehouses and industrial real estate, announced on Monday the launch of its second fund, which will have a total investment size of 2,000 crores and include a green shoe option worth 1,000 crores.
The warehouse and logistics industry is receiving the largest alternative investment fund (AIF) ever raised in India.
The WOLP Fund 2 is currently being raised after the WOLP Fund 1 closed in 2021. 500 crore was invested by high net worth individuals, including renowned individuals and family offices, in the WOLP Fund 1.
A pan-Indian development plan for WOLP Fund 2 aims to construct 8–12 million square feet overall based on opportunities in tier I and tier II locations.
The first fund has demonstrated exceptional performance with a track record of 100% commitment over a portfolio of six assets totaling more than 6.5 million square feet in less than one and a half years from its initial closing. By the middle of 2023, it’s expected that around 50% of the first fund’s investment portfolio would have been physically delivered, leased, and put into service.
Creating and implementing trustworthy procedures that would guarantee high standards of governance and transparency across its operations is a top concern for the organisation. It recently launched the WOLP investor portal, a first-of-its-kind service in the real estate private equity market that gives investors online access to thorough data on the assets and performance of their portfolios.
Anshul Singhal, the Managing Director of Welspun One Logistics Parks, stated that the successful performance of their first WOLP Fund has motivated them to launch their second fund on a larger scale, allowing domestic investors the opportunity to invest in this exciting asset class. This asset class has already attracted foreign institutional capital worth $5-6 billion.
With real estate investment trusts (REITs) gaining centre stage in the financialization of real estate, the fund, in Singhal’s opinion, goes one step further by enabling investors to take part throughout the full asset creation cycle.
The initial fund was fully invested across six projects located in five different cities. With the possibility of leasing the remaining portfolio, the portfolio is pre-leased to well-known and big tenants like Delhivery, Flipkart, FM Logistics, Tata Croma, and Ecom Express, among others.
Following its first investment in April 2021, WOLP has added 171 acres across five additional investments to its flagship 110-acre, 2.5 million-square-foot park.
In addition to its ongoing projects, the company has 600 acres of property in its pipeline with a total development potential of 13 million square feet.
About Welspun One Logistics
The Welspun Group, a sizable corporation that has been completing industrial projects for more than 30 years, supports Welspun One, the only warehouse platform. They can take advantage of a variety of operational synergies in areas like land acquisition and conversion, collaboration, procurement, financing, project management, and operations. With a thorough awareness of the local environment, they are well-positioned to mitigate important risks like licences.
The platform for warehouse and industrial real estate raises, manages, and invests money on behalf of its investors. Additionally, it handles all aspects of running the real estate division of the company internally, including obtaining approvals, master planning and execution, leasing, and project management. Via land purchase, leasing, development, and asset completion and sale, the platform offers its investors access to full-cycle profits.
