Logistics and warehousing manager Welspun One has fully committed the ₹2,000 crore raised under Fund Two. The company has strategically deployed this capital across nine top-quality assets, strengthening its portfolio and positioning itself for further expansion.
Launch of Co-Investment Programme
With Fund Two now fully allocated, Welspun One has introduced a co-investment programme with a corpus of ₹1,000 crore. The company has already secured immediate visibility to raise ₹600 crore. This additional capital will provide Fund Two with dry powder to tap into a ready pipeline of five million square feet, currently in the final stages of closure.
Expanding Portfolio
Welspun One expects its portfolio to grow from the existing nine investments to 14-15 assets. The company has invested in differentiated, off-market, new-age warehousing assets that are increasingly in demand. These assets appeal to both occupiers and investors, offering superior long-term returns compared to traditional warehousing. Evolving supply chain needs, rising e-commerce penetration, and strong demand for tech-enabled, efficient logistics spaces are driving the growth.
Projected Growth and Financial Impact
With this expansion, Welspun One aims to build a 22 million square feet portfolio. Upon completion, the company expects a projected net operating income of around ₹1,100 crore and total assets under management reaching $1.3 billion. Fund Two is also tracking a mark-to-market gross return of 24% equity-internal rate of return (IRR), demonstrating its strong financial performance.
Strong Leasing Momentum at JNPA and Thane
Welspun One’s projects at JNPA and Thane have attracted significant leasing interest, reinforcing their status as premium logistics and business hubs. At JNPA, nearly 30% of the warehousing inventory is already pre-leased at premium rents of ₹55-60 per square foot. Similarly, the WTC Thane development is experiencing high pre-leasing traction, with commitments nearing closure at benchmark rates of ₹130-135 per square foot for urban logistics and ₹150-160 per square foot for commercial use.
Sustained Leasing Growth in FY25
Leasing activity remains strong across Welspun One’s portfolio. The company anticipates total leasing for FY25 to reach 2.5 million square feet while maintaining zero vacancy. This robust momentum highlights the increasing demand for high-quality logistics and industrial spaces in India.
Rapid Growth of India’s Logistics Sector
Experts project that India’s logistics and industrial (L&I) sector will grow at an annual rate of 15% over the next two years. The logistics and industrial (L&I) sector is set to surpass 590 million square feet by 2027. Welspun One’s strategic expansion aligns with this growth trend. As reported by thehindubusinessline.com, this positions the company as a key player in the industry’s future development.
