Welspun One Logistics Parks (WOLP) Raises INR 500 Crore in Initial Close of WOLP Fund 2
- ByStartupStory | May 15, 2023
Welspun One Logistics Parks (WOLP) has successfully concluded the initial close of its second Alternative Investment Fund (AIF), WOLP Fund 2, raising INR 500 crore in just eight weeks. The fund, which aims to raise a total corpus of INR 2,000 crore, including a green-shoe option of INR 1,000 crore, received overwhelming support from domestic high net worth and family office investors.
WOLP Fund 2 was launched in March, and the speed at which it reached its initial close reflects the strong investor confidence in both the Welspun One platform and the warehousing and industrial sector in India. The company’s Managing Director, Anshul Singhal, expressed his satisfaction with the exceptional investor response, stating, “The first round of WOLP Fund 2 successfully closed at INR 500 crore within an 8-week timeframe, which is a record of sorts in the alternative investments space.”
With the addition of project-level debt, the fund is expected to have ample dry powder for investments in projects requiring a total outlay of over INR 6,000 crore. WOLP Fund 2 serves as the successor to WOLP Fund 1, which was introduced in early 2021 and has been fully committed across a portfolio of six projects pan-India, encompassing 6.5 million square feet of grade A warehousing and industrial space.
Fund 1 has also demonstrated an impressive track record, with over 50% of the portfolio already close to being leased and physically delivered within a span of just two years. WOLP envisions that Fund 2 will further expand its portfolio by adding 10-12 million square feet of new projects, ultimately reaching a total portfolio size of 16-18 million square feet over the next 4-5 years.
The warehousing sector has experienced remarkable growth and garnered significant investor interest over the past few years, particularly during the Covid-19 pandemic, where warehousing demand surged due to the rapid increase in e-commerce penetration. Post-Covid, the sector continues to witness growth, fueled by multiple engines, including the expansion of e-commerce, traditional retail, and manufacturing.
Welspun One Logistics Parks remains at the forefront of this thriving sector, leveraging its robust platform and investor support to seize opportunities in India’s warehousing and industrial space. The successful initial close of WOLP Fund 2 positions the company for further growth and underscores its commitment to delivering high-quality logistics solutions to meet the evolving demands of the market.
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