Welspun One Logistics Parks (WOLP) has raised INR 500 crores for its second Alternative Investment Fund (AIF), WOLP Fund 2, within just eight weeks. WOLP Fund 2, launched in March 2023, aims to gather a total corpus of INR 2,000 crores, including a green shoe option of INR 1,000 crores, to invest in projects worth over INR 6,000 crores. Welspun One's first fund, introduced in early 2021, has been fully committed across a portfolio of 6 projects, delivering impressive results.
Welspun One Logistics Parks (WOLP) has concluded the initial close of its second Alternative Investment Fund
(AIF), WOLP Fund 2, raising INR 500 crores from domestic high net worth and family office investors in just eight
weeks. The speed of the fundraising reflects strong investor confidence in both the Welspun One platform and the
potential of India's warehousing and industrial sector.
Launched in March 2023, WOLP Fund 2 aims to raise a total of INR 2,000 crores, including a INR 1,000 crores green
shoe option. Combined with project level debt, this will provide the fund with enough capital to invest in projects with
a total value exceeding INR 6,000 crore. Fund 2 follows the success of WOLP Fund 1, which was introduced in early
2021 and fully committed to a portfolio of six projects across India, totalling 6.5 million square feet of grade A
warehousing and industrial space.
Fund 1 has achieved an impressive track record, with over 50% of the portfolio already leased and physically
delivered within two years. Fund 2 is expected to add 10-12 million square feet of new projects, bringing Welspun
One's total portfolio to 16-18 million square feet over the next 4-5 years.
The warehousing sector has experienced significant growth over the past few years, attracting investor attention,
particularly during the COVID-19 pandemic when e-commerce demand surged. Post-COVID, demand continues to
rise due to various factors, including increased consumption (both online and offline) and manufacturing growth.
The rapid initial close of Fund 2, raising INR 500 crores, within a record time of eight weeks, demonstrates the high
level of investor interest and confidence in the Welspun One platform and the warehousing sector. It is noteworthy that
Fund 1 took over a year to raise the same amount.
Balkrishan Goenka, Chairman of Welspun Group, emphasized the commitment of Welspun One to provide top-quality
warehousing and industrial real estate, aligning with the government's goal under the National Logistics Policy to
reduce logistics costs as a percentage of India's GDP to competitive levels worldwide. Favourable government
policies, combined with growing consumption, the exponential growth of e-commerce, and sustained expansion in
manufacturing, position the sector for significant growth in the coming years. Goenka expressed excitement about the
ambitious national development plan, which not only contributes vital infrastructure to the country but also offers
compelling returns for investors.
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