Welspun One, the integrated fund and development management platform focused on logistics and industrial parks, has successfully raised over Rs 2,275 crore through its second fund, marking a significant milestone in the Indian real estate alternatives sector. This makes it the largest domestic fundraise in this segment.
The fund, Welspun One Fund 2, attracted a diverse pool of investors, including high-net-worth individuals, family offices, corporates, and domestic institutions, totaling around 800 Limited Partners (LPs). The fund has already committed nearly 40% of its investible capital to four strategic investments and expects to allocate the remaining capital over the next 3-4 quarters, fueled by a robust pipeline of deals. This will add 8 million sq ft to its existing portfolio of 10 million sq ft, bringing the total portfolio to 18 million sq ft and a projected project outlay of $1 billion.
Welspun One’s focus for Fund 2 is on new-age warehousing assets, such as urban distribution centers, cold chain facilities, agro logistics, and port and airport-based logistics. These niche sectors are expected to yield superior returns due to limited existing supply, strong demand, and growth, with limited competition.
The company’s commitment to advancing critical logistics infrastructure aligns with India’s strategic objective of reducing logistics costs from 14% to 8%, thereby enhancing the global competitiveness of Indian industries. By investing in essential infrastructure, Welspun aims to streamline logistics operations, stimulate industrial growth, and ultimately contribute to the economy’s growth.
Welspun One’s investor base now comprises over 1,000 unique investors, a testament to the company’s strong track record and the growing confidence in the Indian logistics sector. The company plans to further diversify its investor base by attracting institutional capital to meet future growth requirements.
The success of Welspun One Fund 2 underscores the increasing demand for high-quality logistics infrastructure in India, driven by the growth of e-commerce, manufacturing, and other industries. The company’s strategic focus on new-age warehousing assets positions it well to capitalize on this trend and contribute to India’s economic development.
