Welspun One Raises Record Rs 2,275 Crore for Real Estate Fund
Real Estate

Welspun One Raises Record Rs 2,275 Crore for Real Estate Fund

Integrated fund and development management platform Welspun One has raised over Rs 22.75 billion through its second fund, marking the largest domestic fund raise in the domestic real estate alternatives sector.

The closure of the fund inclusive of co-investment commitments is led by a diverse pool of around 800 Limited Partners (LPs) or investors, including high-net-worth and ultra-high-net-worth individuals, family offices, corporates, and domestic institutions.

Welspun One Fund 2 has already committed nearly 40% of its investible capital across four investments and expects committing the remaining capital over the next 3-4 quarters, given a robust pipeline of deals. This will add 8 million sq ft to its existing portfolio of 10 million sq ft. The aggregate portfolio to 18 million sq ft will entail a total project outlay of $1 billion.

?Our commitment to advancing critical logistics infrastructure is in perfect alignment with India's strategic objective of reducing logistics costs from 14% to 8%, thereby enhancing the global competitiveness of our industries. By making strategic investments in essential infrastructure, Welspun is aiming to streamline logistics operations, stimulate industrial growth, and ultimately contribute to the economy?s growth,? said Balkrishan Goenka, Chairman of Welspun World. Combined with its first fund, Welspun One's investor base now comprises over 1,000 unique investors.

?Having successfully established a well-capitalized platform poised to achieve an AUM of over $1 billion. We will continue to build on this foundation and seek to diversify our Limited Partner base by augmenting our retail investor base with institutional capital to meet future growth requirements,? said Anshul Singhal, Managing Director, Welspun One. Welspun One's focus for Fund 2 is on new age warehousing assets, such as urban distribution centers, cold chain, agro logistics, and port and airport-based logistics. These niche sectors offer the potential for superior returns due to low existing supply, strong demand and growth but limited competition.Examples of such deals include a mixed-use urban logistics development in Thane, Mumbai Metropolitan Region (MMR), encompassing close to 1 million sq ft with an estimated cost of Rs 6 billion, and a partnership with the Jawaharlal Nehru Port Authority (JNPA) for the development of industrial and warehousing infrastructure in the JNPA Special Economic Zone (SEZ) with a development potential of approximately 1.3 million sq ft at an estimated cost of Rs 7 billion. The integrated fund and development management platform is designed to deliver large format, institutional Grade-A logistics and industrial parks across India.

It is the warehousing platform of the $5 billion global conglomerate Welspun World that has business interests in line pipes, home textiles, infrastructure, advanced textiles, and flooring solutions.

The first fund worth Rs 5 billion was raised in early 2021 and is fully committed with six investments, aggregating to a development potential of over 7.2 million sq ft across 300 acres of land in five Indian cities.

Currently, about 50% of this fund is already delivered, with the remaining 50% scheduled for delivery over the next 4-6 quarters. The portfolio includes key clients such as Tata Croma, Delhivery, FM Logistics, Asian Paints, and Ecom Express, amongst others.

Additionally, the first fund recently delivered its first exit through the sale of its investment in a 3 lakh sq ft park spread over 13-acre in NCR, sold to a leading Asia-focused logistics REIT in a transaction valued at Rs 90 crore.

Integrated fund and development management platform Welspun One has raised over Rs 22.75 billion through its second fund, marking the largest domestic fund raise in the domestic real estate alternatives sector. The closure of the fund inclusive of co-investment commitments is led by a diverse pool of around 800 Limited Partners (LPs) or investors, including high-net-worth and ultra-high-net-worth individuals, family offices, corporates, and domestic institutions. Welspun One Fund 2 has already committed nearly 40% of its investible capital across four investments and expects committing the remaining capital over the next 3-4 quarters, given a robust pipeline of deals. This will add 8 million sq ft to its existing portfolio of 10 million sq ft. The aggregate portfolio to 18 million sq ft will entail a total project outlay of $1 billion. ?Our commitment to advancing critical logistics infrastructure is in perfect alignment with India's strategic objective of reducing logistics costs from 14% to 8%, thereby enhancing the global competitiveness of our industries. By making strategic investments in essential infrastructure, Welspun is aiming to streamline logistics operations, stimulate industrial growth, and ultimately contribute to the economy?s growth,? said Balkrishan Goenka, Chairman of Welspun World. Combined with its first fund, Welspun One's investor base now comprises over 1,000 unique investors. ?Having successfully established a well-capitalized platform poised to achieve an AUM of over $1 billion. We will continue to build on this foundation and seek to diversify our Limited Partner base by augmenting our retail investor base with institutional capital to meet future growth requirements,? said Anshul Singhal, Managing Director, Welspun One. Welspun One's focus for Fund 2 is on new age warehousing assets, such as urban distribution centers, cold chain, agro logistics, and port and airport-based logistics. These niche sectors offer the potential for superior returns due to low existing supply, strong demand and growth but limited competition.Examples of such deals include a mixed-use urban logistics development in Thane, Mumbai Metropolitan Region (MMR), encompassing close to 1 million sq ft with an estimated cost of Rs 6 billion, and a partnership with the Jawaharlal Nehru Port Authority (JNPA) for the development of industrial and warehousing infrastructure in the JNPA Special Economic Zone (SEZ) with a development potential of approximately 1.3 million sq ft at an estimated cost of Rs 7 billion. The integrated fund and development management platform is designed to deliver large format, institutional Grade-A logistics and industrial parks across India. It is the warehousing platform of the $5 billion global conglomerate Welspun World that has business interests in line pipes, home textiles, infrastructure, advanced textiles, and flooring solutions. The first fund worth Rs 5 billion was raised in early 2021 and is fully committed with six investments, aggregating to a development potential of over 7.2 million sq ft across 300 acres of land in five Indian cities. Currently, about 50% of this fund is already delivered, with the remaining 50% scheduled for delivery over the next 4-6 quarters. The portfolio includes key clients such as Tata Croma, Delhivery, FM Logistics, Asian Paints, and Ecom Express, amongst others. Additionally, the first fund recently delivered its first exit through the sale of its investment in a 3 lakh sq ft park spread over 13-acre in NCR, sold to a leading Asia-focused logistics REIT in a transaction valued at Rs 90 crore.

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