Logistics and warehousing manager Welspun One has committed the entire amount of ₹2,000 crore, raised in Fund 2, across nine top quality assets, the company said in a statement.

With the entire amount being deployed, the company has launched a co-investment programme with a corpus of ₹1,000 crore and an immediate visibility to raise ₹600 crore. The additional capital will provide Fund 2 with dry powder to tap into a ready pipeline of 5 million square feet, currently at advanced stages of closure, it said.

“The fund’s portfolio is now expected to grow from its existing nine investments to potentially 14-15 investments,” it added.

The amount under Fund 2 has been invested in highly differentiated, off-market new-age warehousing assets. These are segments that are seeing increasing demand from occupiers and investors alike, according to Welspun One. “These assets offer superior long-term returns compared to traditional warehousing, driven by evolving supply chain needs, rising e-commerce penetration, and a growing preference for tech-enabled, efficient logistics spaces,” it said.

The expansion will take Welspun One’s portfolio to 22 msf with a projected net operating income of around ₹1,100 crore ($130 million) upon completion, leading to assets under management of $1.3 billion.

Fund 2 is also tracking a mark-to-market gross return of 24 per cent equity-internal rate of return, it said.

Welspun One’s projects at JNPA and Thane have attracted significant leasing interest, reinforcing their position as premium logistics and business hubs, the company said. At JNPA, nearly 30 per cent of the warehousing inventory is already pre-leased at premium rents of ₹55-60 per square foot. Similarly, the WTC Thane development is seeing strong pre-leasing traction, with commitments nearing closure at benchmark rates of ₹130-135 psf for urban logistics and ₹150-160 psf for commercial use, reflecting its differentiated offering.

Overall, leasing momentum across the portfolio is robust, with total leasing for FY25 expected to reach 2.5 msf whilst maintaining zero vacancy.

India’s logistics and industrial (L&I) sector is projected to grow at an annual rate of 15 per cent over the next 2 years crossing 590 msf in 2027.

Published on February 26, 2025