Welspun group co to build 1 mn sq ft warehousing for Bengaluru City Region

Will invest Rs 300 crore in the project, which is coming up on 40 acres at Malur-Hosur road in Tamil Nadu

Welspun One Logistics Parks (WOLP), a pan-India asset management and development platform and part of Welspun Group, has acquired 40 acres of land to set up a large-scale warehousing facility at Malur-Hosur road in Tamil Nadu.

With a development potential of 1 million square feet and a total project cost of Rs 300 crore, the facility will service the Bengaluru Metropolitan region’s (BMR’s) industrial and warehousing demand for space, said Welspun in its release today.

While the warehouse will serve the Bengaluru Metropolitan Region, its location is in Tamil Nadu but closer to Bengaluru city in Karnataka.

Bengaluru has historically been a warehousing supply starved market with limited institutional developer presence in the Grade A space; however, demand has witnessed a significant uptick on the back of the post COVID E-Commerce boom.

As per research estimates by various International Property Consultants (IPCs), demand for both warehousing and industrial space in Bengaluru is expected to be 15-20 million square feet over the next 3 years. This acquisition comes at an opportune time giving WOLP an early mover advantage while helping the firm capitalize on the shifting customer preference towards Grade A warehouses, said the release.

“South India has always been an important market for us, and this is a crucial first step towards building a presence in the region by developing logistics infrastructure. WOLP has made significant progress in supporting the county’s warehousing network in a short span of time – from our flagship Park in Bhiwandi, Maharashtra to the more recent acquisitions in Farukhnagar, Haryana and Lucknow, Uttar Pradesh. Our current acquisition will deepen our Fund Portfolio as well as strengthen our vision of being a pan India warehousing player,” the release quoted B.K. Goenka, chairman at Welspun Group as saying.

This is the first of six projects as part of the Memorandum of Understanding (MoU) that Welspun One recently signed with the Government of Tamil Nadu's nodal agency to set up warehousing facilities across the region. The projects, to be executed under the MoU, are expected to bring in direct investments of approximately Rs 2,500 crore to the state.