Welspun One Logistics Park’s Fund 1 is eyeing the delivery of two million square feet of space by the April–June period of next year, while 1 million square feet has already been delivered.
The fund has committed 100 per cent of its ₹500 crore corpus across six investments to create a portfolio of ₹2,300 crore spanning five cities that include the Mumbai Metropolitan Region, National Capital Region, Bengaluru, Chennai and Lucknow, aggregating to about 6.6 million square feet of gross leasable area.
According to Anshul Singhal, Managing Director, Welspun One Logistics Parks, nearly 50 per cent of the fund’s portfolio is expected to be delivered and rent-generating by mid-CY23, which is about two years from the fund’s first close.
Welspun One Logistics Park raised India’s first alternative investment fund (AIF), focusing specifically on warehouse development.
The first investment of the fund was made in April 2021 in its flagship 110-acre project in Bhiwandi, MMR, which has a gross leasable area of 2.5 million square feet.
“Over the next few years, the company plans to develop a portfolio of 20 to 25 million square feet across first and last mile facilities across Tier-1, Tier-2, and Tier-3 cities across India,” he said, adding that the company has an active pipeline of 600 acres of land that enables the development of 13 million square feet of warehousing space, in addition to the 6.6 million square feet under Fund 1.
Deployment Schedule of Fund 1
According to Singhal, of the ₹500 crore corpus, nearly ₹191 crore will be deployed for the development of warehouse assets in north India, ₹168 crore will be deployed for the southern region, and ₹90 crore will be deployed in the western region. The remaining ₹50 crore has been set aside for reserves and expenses.
“Some 60 per cent of the under-construction or completed portfolio is already pre-leased to blue-chip tenants that include Delhivery, Flipkart, and others,” he said.
Singhal said Tier-2 and Tier-3 cities accounted for 20 per cent of warehousing absorption in H12022 and are seen as connectors to Tier-1 cities. In-city warehouses are also gaining ground in these cities.
“Going forward, we will look at another fund for the warehousing sector. “However, details have not yet been decided,” he said.