Welspun One Launches ₹1,000 Crore Co-Investment Program to Expand Fund 2 Portfolio

27 Feb 2025 , 02:24 PM

Welspun One, an integrated fund and management development platform, on Wednesday announced the launch of a ₹1,000 crore co-investment programme. This action aims to underpin the company’s second Alternative Investment Fund (AIF), Fund 2, by offering supplemental liquidity in order to support the acceleration of its project pipeline.

Currently, Fund 2 has a ready pipeline of 5 million sq. ft., which is in the final stages of closure, enabling faster execution and project delivery. With this addition, Welspun One’s overall portfolio will increase to 22 million sq. ft., expected to produce an estimated ₹1,100 crore ($130 million) net operating income when developed.

Fund 2 was opened for subscription in March 2023 with a target to raise a total corpus of ₹2000 crore, which includes a green shoe option for an additional ₹1000 crore to increase the investment capacity.

Acquisition in-line with fund strategy to acquire off-market, high-value warehousing assets given increasing demand from both investors and occupiers in the logistics and industrial sector.

These assets are garnering higher long-run returns than traditional warehousing, as e-commerce sweeps through the economy, supply chain requirements evolve, and tech-enabled logistics solutions see wider adoption.

Driven by accelerated e-commerce adoption amid the pandemic, India’s logistics and industrial (L&I) sector is expected to witness a 15% CAGR through the next two years, crossing the mark of 590 million sq. ft. by 2027, Welspun one says.

In less than eight months post-final close, Welspun One has now fully invested 100% of the capital of Fund 2* in nine Grade A assets underlining the strong confidence entailed by the investors.

The company has launched a co-investment program to meet the growing scale and capital intensity of its investments, targeting commitments of up to ₹1,000 crore, with ₹600 crore already visible. The portfolio is also expected to expand from nine investments to 14 or 15, which will allow it to narrow its investment targets even further.

Anshul Singhal, Managing Director, Welspun One commented, “The speed with which Fund 2 has been deployed is a testament to the company’s potential for identifying high-value opportunities, deploying capital efficiently, and executing disciplined investments. The co-investment program is consistent with the company’s strategy of capitalizing on large-scale opportunities while maintaining prudent diversification, he said.