Within eight weeks, Welspun One Logistics Parks finalised the initial closure of its second alternative investment fund, WOLP Fund 2, raising ₹500 crore from domestic high-net-worth and family office investors. The funds will be used to purchase warehouses and industrial equipment.
WOLP Fund 2 was launched in March 2023 with a total of ₹2,000 crore, including a ₹1,000 crore green shoe option. Along with project-level debt, this is intended to provide the fund with enough dry powder to engage in projects totalling more than ₹6,000 crore.
This fund is the successor to WOLP Fund 1, which was launched in early 2021 and has since been completely committed to a portfolio of six projects totalling 6.5 million square feet of grade-A warehouse and industrial space. More than half of the fund’s portfolio is on the verge of being leased and physically delivered. Fund 2 will add 10–12 million square feet of additional projects to this footprint, bringing Welspun One’s entire portfolio to 16–18 million square feet over the next 4-5 years.
“Welspun One is committed to providing best-in-class warehousing and industrial real estate to India in order to realise the government’s vision under the National Logistics Policy of reducing logistics costs as a percentage of GDP for India to globally competitive levels,” said Balkrishan Goenka, Chairman, Welspun Group. “The government’s proactive policy stance, combined with rising consumption, exponential e-commerce growth, and sustained manufacturing expansion, positions the sector to achieve exponential growth over the next several years,” he adds.