WOLP’s second warehousing-focused fund raises INR1,000 cr in 4 months

Welspun One Logistics Parks (WOLP) has successfully raised INR 1,000 crores within four months of launching its second fund. It has also announced the opening of its “green shoe” option to raise an additional INR 1,000 crore. The potential corpus could reach INR 2,000 crore upon completion of the green shoe option, which would rank it among the largest in the domestic real estate alternatives space. With an advanced pipeline of land parcels in key warehousing micro markets such as MMR, Chennai, Bangalore, and Lucknow already in place, the fund 2 is well positioned to add 10-12 million square feet of new projects to its existing 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 INR 8,000 crore, which will propel Welspun One to an AUM of USD 1 billion. Welspun One was the first to recognize the untapped potential for domestic investors, WOLP provided this opportunity through financialization of real estate by launching India’s first AIF of INR 500 crore in 2021. This fund successfully committed the entire corpus across six investments aggregating to ~6.5MM sf in a short span of ~1.5 years from its first close. Further, the portfolio has also seen excellent traction on the ground with ~50% of first fund’s portfolio leased and delivered.