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Welspun One Logistics Parks announces first AIF product, aims to raise ₹500 crore

Welspun One Logistics Parks, a pan-India integrated fund, development and asset management platform backed by the Welspun Group, announced its first Alternate Investment Fund (AIF) product ‘Welspun One Logistics Parks Fund I’ with a target to raise ₹500 crore.

Welspun promoter family office has committed an investment of ₹75 crore.

“The fund, a SEBI-registered Category II AIF, is India’s first warehousing fund that provides domestic institutions, HNIs, family offices and NRIs, an opportunity to invest in the warehousing and industrial real estate sector in India,” the company said in a statement.

The mobilised funds will be utilised to acquire land parcels in high demand, pre-identified markets, and develop Grade-A warehousing parks which will be leased on a long-term basis to highly rated e-commerce, FMCG, third-party logistics (3PLs), pharma and auto-ancillaries, it said.

“On completion, these assets would be divested to institutional investors including private equity, pension and sovereign funds, REITs to provide an exit and deliver the targeted returns to the fund investors,” the company said.

B.K. Goenka, chairman, Welspun Group said, “Presently, domestic investors can only invest in this high growth sector by investing directly in warehouses. Through this AIF, the investor can reap the benefits of the returns by owning units of a fund, instead of an asset.”

Anshul Singhal, managing director, Welspun One Logistics Parks, said, “Our business model of an integrated fund, development and asset management platform ensures that there is control over the entire lifecycle of the investment including land acquisition, leasing, development and divestment.”

“The team has spent the last 12 months creating a strong deal pipeline, with visibility on the deployment of a significant portion of the fund corpus. This includes our under-construction flagship 110-acre park with a leasable area of approximately 3 million sq. ft. in Bhiwandi, Maharashtra, which is already significantly pre-leased,” he said.

In total, the company expects to be able to deliver a portfolio of 6-7 million sq. ft. of Grade-A warehousing space over the next 3-4 years, he added.

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Printable version | Mar 8, 2021 12:17:13 AM | https://www.thehindu.com/business/welspun-one-logistics-parks-announces-first-aif-product-aims-to-raise-500-crore/article33612234.ece

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