Welspun One Logistics Parks has concluded the initial close of its second Alternative Investment Fund, WOLP Fund 2, raising ₹500 crores from domestic high net worth and family office investors within a span of eight weeks. The funds will be used to invest in warehousing and industrial assets.
WOLP Fund 2 was launched in March 2023 to raise a corpus of ₹2,000 crore, including a green shoe option of ₹1,000 crore. Along with project-level debt, this is expected to give the fund enough dry powder to invest in projects, which entail an outlay of over ₹6,000 crore.
This fund is the successor to WOLP Fund 1, introduced in early 2021, which has since been fully committed across a portfolio of six projects of 6.5 msf of grade-A warehousing and industrial space. Over half of the fund portfolio is close to being leased and physically delivered. Fund 2 will further add 10-12 msf of new projects to this footprint, taking Welspun One’s total portfolio to 16-18 msf over the next 4-5 years.
“Welspun One is committed to providing India with best-in-class warehousing and industrial real estate in order to realise the government’s vision under the National Logistics Policy of reducing logistics costs as a percentage of GDP for India to globally competitive levels,” said Balkrishan Goenka, Chairman, Welspun Group. Adding, “The proactive policy stance of the government coupled with rising consumption, exponential e-commerce growth, and sustained manufacturing expansion makes the sector well positioned to achieve exponential growth over the next several years.