Welspun One Launches ₹1,000 Cr Co-Investment Program

Integrated fund management platform Welspun One announced on Wednesday that it is launching a co-investment program worth Rs 1,000 crore.

This will greatly assist in the deployment of the Company’s second Alternative Investment Fund, named Fund 2, by providing dry powder to close on a ready-5 million sq ft pipeline that is already at the advanced stages of being closed.

The expansion is said to increase the company's total portfolio to approximately 22 million sq ft with the expected completion net operating income projected to be around Rs 1,100 crore (130 million USD), Welspun One said. 

Fund 2, which was launched in March 2022 with a target corpus of 2000 crore including a green shoe option of 1000 crore, has captured a differentiated off-market new-age warehousing infill portfolio that is actively being pursued by landlords and investors, the platform noted.

According to the firm, these assets outperform traditional warehousing strategies as they provide better return on investment due to changing supply chain dynamics, increased penetration of e-commercial activities, and preference for modern, tech enabled efficient logistics facilities.

Welspun India

Welspun One intends to increase its portfolio size by 2x by obtaining funding of Rs 4,000 crore.

According to Welspun One, India's logistics and industrial (L&I) sector is expected to grow at a compound annual growth rate (CAGR) of approximately 15% annually in the next two years which is likely to surpass about 590 million square feet by the year 2027. 

Within eight months of its final close, Welspun One has been able to fully deploy Fund 2 across nine Grade A assets.

The firm has stated, “In light of the growing scale and capital intensity of these investments, Welspun One is putting together an investment co sponsorship opportunity with a target of up to Rs 1,000 crore. We have also booked strong visibility on Rs 600 crore.” 

Now the rest of the portfolio is expected to expand from 9 investments to possibly 14-15 investments, it added.

“The rapid commitment of Fund 2 exemplifies our ability to deploy capital efficiently, find quality opportunities and execute decisively and efficiently. To Prateek’s point, launching co-investment programs are also a natural progression of this strategy as they present the best to our clients in terms of scale whilst still allowing the firm to ensure prudent diversification,” said Anshul Singhal, Managing Director, Welspun One.