Welspun One Logistics Parks (WOLP) has launched a ₹1,000 crore co-investment program to strengthen its second Alternative Investment Fund (AIF), known as Fund 2. This initiative aims to provide additional capital for a pipeline of 5 million square feet of warehousing projects nearing finalization. With this expansion, Welspun One’s total portfolio will reach approximately 22 million square feet, generating an estimated net operating income of ₹1,100 crore (around $130 million).
Rapid Growth of Fund 2
Welspun One introduced Fund 2 in March 2023 with an initial corpus of ₹2,000 crore, including a ₹1,000 crore green shoe option. Within just eight months of its final close, the fund had fully committed its resources across nine Grade-A warehousing assets. To capitalize on large-scale opportunities while maintaining prudent diversification, the company has launched this co-investment program, which seeks to raise an additional ₹1,000 crore. Strong investor interest has already provided visibility on ₹600 crore of the target amount.
India’s Booming Warehousing and Logistics Sector
The Indian logistics and industrial real estate sector is expected to grow at a compound annual growth rate (CAGR) of approximately 15% over the next two years. Experts anticipate the total warehousing stock to surpass 590 million square feet by 2027. Several factors are driving this surge, including increasing e-commerce penetration, evolving supply chain demands, and a growing preference for tech-enabled, efficient logistics spaces. Consequently, investors continue to show confidence in high-quality warehousing assets, creating substantial opportunities for developers like Welspun One.
Strategic Focus on Expansion and Diversification
Anshul Singhal, Managing Director of Welspun One, emphasized that this co-investment program serves as a strategic extension of Fund 2. The initiative will allow the company to capitalize on large-scale warehousing opportunities while ensuring portfolio diversification. By focusing on industrial real estate solutions, Welspun One aims to generate superior returns for investors and contribute meaningfully to India’s evolving logistics infrastructure.
Commitment to ESG and Responsible Development
Welspun One prioritizes responsible development by adhering to green building standards and emphasizing Environmental, Social, and Governance (ESG) considerations. The company has integrated sustainable practices across its warehousing developments, ensuring energy-efficient and environmentally responsible infrastructure. In addition, Welspun One has strengthened its governance framework by appointing independent board members and investment committee representatives. Moreover, the introduction of an investor portal enhances transparency, allowing stakeholders to access real-time information on their investments.
Future Outlook for Warehousing Investments
Given the rapid expansion of India’s warehousing sector, industry experts anticipate continued demand for modern, well-located logistics spaces. Developers with a strong track record, such as Welspun One, remain well-positioned to attract institutional investors seeking stable, long-term returns. The success of this ₹1,000 crore co-investment program will further reinforce Welspun One’s leadership in the Indian warehousing industry.
In summary, Welspun One’s latest initiative aligns with the company’s commitment to scaling up its logistics portfolio while maintaining sustainable and efficient operations. As India’s supply chain infrastructure continues evolving, strategic investments in high-quality warehousing assets will play a crucial role in supporting economic growth and industrial expansion.
