Welspun One Logistics Parks, an asset management platform, is planning to invest around Rs 2,000 crore to develop and lease a portfolio of seven-eight million sq ft of grade-A warehousing spaces across India.
The platform, backed by the Welspun Group, will be setting up these warehousing parks in pre-identified high-growth markets such as Mumbai, Pune, Bengaluru, NCR, Chennai, Kolkata and Lucknow.
Alongside, the company will also be looking at developing warehouses in high-potential Tier-II and -III markets.
Currently, the fund is in advanced discussions with landowners in Tier-I cities including Mumbai, Pune, Bengaluru, Delhi and Kolkata to pick up land parcels ranging between 40 and 75 acre.
The fund is in the process of developing and operating a total warehousing portfolio of 300-400 acre. These parks will be leased on a long-term basis to tenants from sectors such as e-commerce, FMCG, third-party logistics, pharma and auto-ancillaries.
Currently, Welspun One also has an advanced deal pipeline of twice the size of its Bhiwandi project with the demand primarily coming from e-commerce, 3PL, manufacturing and pharmaceutical companies.
The company has recently launched India’s maiden warehousing alternate investment fund (AIF), Welspun One Logistics Parks Fund I, and is close to concluding the fundraising. The fund has already achieved the first close with response from corporates, family offices and high net worth individuals within two months of its launch.
While demand in other commercial real estate segments has been impacted in the last few quarters, the warehousing market has stood out led by e-commerce and third-party logistics growth.