WOLP (Welspun One Logistics Parks), an integrated fund and development management platform specialising in industrial real estate and warehousing, has raised more than Rs 500 crore at the initial closure of its second Alternative Investment Fund (AIF), WOPL Fund 2. Within eight weeks of its March inception, the fund had secured capital from domestic family offices and high-net-worth individuals. A total corpus of Rs. 2000 crore, including Rs. 1000 crore for green shoes, is the goal.
This is the largest AIF ever raised for the warehouse and logistics industry in India.
For the warehouse and logistics industry in India, this is the largest AIF ever raised. The government’s proactive approach, increased consumer spending, exponential e-commerce growth, and steady manufacturing expansion put the industry in a strong position to experience exponential growth over the coming years. The company is excited to launch the ambitious national development plan, which will not only provide the country with much-needed infrastructure but will also provide investors with enticing rewards.
The total capital of the fund is anticipated to give it enough dry powder to engage in projects that require an outlay of more than Rs 6000 cr in addition to project-level loans. The quickness of the rise highlights the high level of investor trust in the foundation and future prospects of the country’s industrial and warehousing industry.
The enthusiastic response from investors in such a short period of time—8 weeks—is essentially a record in the alternative investment world. This accomplishment not only demonstrates the confidence and trust that investors have placed in us, but also the growing depth of capital that is available from domestic investors eager to support cutting-edge concepts and infrastructure.
The company is excited to launch the ambitious national development plan
With potential in tier, I and tier II cities as well as in-city projects in Delhi, Mumbai, and Bengaluru, Welspun One Logistic Parks Fund 2 has a pan-India growth plan that seeks to construct around 10 to 12 million square feet overall. This second fund is the successor to the WOLP Fund 1, an alternative investment vehicle for domestic investors that is governed by SEBI and raised capital in 2021. A group of high-net-worth investors, including well-known people and family offices, helped WOLP Fund 1 raise Rs 500 crore.
Early in 2021, the first fund, WOLP Fund 1, was introduced. Since then, it has been fully committed to a portfolio of six projects across India, totalling 6.5 million square feet of grade-A warehouse and industrial space. The Welspun One Logistic Parks Fund 1’s investment portfolio has gained traction, with about 50% of it anticipated to be physically delivered, leased, and operational soon within a two-year period following its inception.
With visibility on leasing of the balanced portfolio, the portfolio is pre-leased to well-known and big tenants including Flipkart, Delhivery, Tata Croma, Ecom Express, and FM Logistics, among others. Over the next four to five years, the second fund is anticipated to add another 10 to 12 million square feet of new projects to this footprint, bringing the overall portfolio of Welspun One to 16 to 18 mn square feet.