Welspun One launches Rs 1K cr co-investment programme to expand portfolio

Integrated fund and management development platform Welspun One on Wednesday announced the launch of a Rs 1,000 crore co-investment program.

This initiative will support its second Alternative Investment Fund (AIF), Fund 2, by providing dry powder to capitalise on a ready pipeline of 5 million sq ft, which is currently in the advanced stages of closure.

With this expansion, the company's aggregate portfolio will grow to around 22 million sq ft, generating a projected net operating income of approximately Rs 1,100 crore (USD 130 million) upon completion, Welspun One said.

Launched in March 2023, with an aim to raise a corpus of Rs 2,000 crore, including the green shoe option of Rs 1,000 crore, Fund 2 has secured a portfolio of highly differentiated, off-market opportunities in new-age warehousing assets - segments that are seeing increasing demand from occupiers and investors alike, the platform said.

These assets offer superior long-term returns compared to traditional warehousing, driven by evolving supply chain needs, rising e-commerce penetration, and a growing preference for tech-enabled, efficient logistics spaces, it said.

India's logistics and industrial (L&I) sector is projected to grow at a Compound Annual Growth Rate (CAGR) of around 15 per cent year-on-year over the next two years crossing around 590 million sq ft by 2027, according to Welspun One.

Within just eight months of its final close, Welspun One has successfully committed 100 per cent of its Fund 2 across nine Grade A assets.

"Given the increasing scale and capital intensity of these investments, Welspun One is launching a co-investment program, targeting commitments of up to Rs 1,000 crore, with strong visibility on Rs 600 crore," the company said.

The fund's portfolio is now expected to grow from its existing nine investments to potentially 14-15 investments, it stated.

"The rapid commitment of Fund 2 reaffirms our ability to efficiently deploy capital, identify high-quality opportunities, and execute with discipline. The launch of our co-investment program is a natural extension of this strategy, allowing us to capitalise on large-scale opportunities while maintaining prudent diversification," said Anshul Singhal, Managing Director, Welspun One.