Welspun One raises Rs 2,275 cr for second fund to build storage assets
Welspun One, an integrated fund and development management platform, announced on Monday the successful closing of its second fund. Image: Welspun One Linkedin
Welspun One has raised Rs 2,275 crore from investors for its second fund and plans to use the capital to develop self-storage spaces.
Welspun One, an integrated fund and development management platform, on Monday announced the successful closing of its second fund with an aggregate amount of Rs 2,275 crore, including co-investment commitments.
According to the company, this is the largest domestic fundraising in this sector.
The capital was raised by a diverse group of approximately 800 limited partners (LPs) or investors, including high net worth and ultra-high net worth individuals, family offices, corporations and domestic institutions.
Welspun One’s second fund has already committed almost 40 percent of its investable capital to four investments. It expects to commit the remaining capital in the next 3-4 quarters.
This will add 8 million square feet to Welspun One’s existing portfolio of 10 million square feet, bringing the total portfolio to approximately 18 million square feet. Total project expenditure is approximately USD 1 billion.
Welspun One’s Fund 2 focuses on modern warehousing facilities such as urban distribution centres, cold chain, agro-logistics and port and airport logistics, the statement said.
Balkrishan Goenka, Chairman, Welspun World, said, “Our commitment to improving critical logistics infrastructure aligns perfectly with India’s strategic objective of reducing logistics costs from 14 per cent to 8 per cent, thereby increasing the global competitiveness of our industries.”
By investing in essential infrastructure, the fund aims to streamline logistics activities and stimulate industrial growth, he said.
Anshul Singhal, Managing Director, Welspun One, said, “Starting the exploration of new warehousing assets is an exciting journey for us at Welspun One. Our progress has been remarkable, with the successful establishment of a well-capitalized platform that is poised to reach over USD 1 billion in AUM.”
Welspun One raised Rs 500 crore in its maiden fund.
To date, Welspun One’s first fund has been fully committed with six investments, representing a development potential of 7.2 million square feet on 300 hectares of land across five cities.
Currently, approximately 50 percent of this has already been delivered. The remaining 50 percent is expected to be delivered in the next 4-6 quarters.
Its customer portfolio includes Tata Croma, Delhivery, FM Logistics, Asian Paints and Ecom Express.
Welspun One is the warehousing platform of the USD 5 billion global conglomerate Welspun World, one of India’s fastest growing multinationals with a leading position in pipes, home textiles, infrastructure, advanced textiles and flooring solutions.
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First print: 08 Jul 2024 | 12:07 PM IST