Welspun One commits all ₹2000 crore of Fund 2 in 8 months

The logistics and industrial (L&I) real estate manager Welspun One has committed 100% of its ₹2000 crore Fund 2, across nine Grade A assets within eight months of its final close.

Welspun One is also launching a ₹1,000 crore co-investment program, with ₹600 crore already secured, to expand its logistics portfolio. The additional capital will fund 5 million sq. ft. of warehousing space, increasing its investments from nine to 14-15 properties.

The release reads, “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. 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.”

With this expansion, Welspun One’s aggregate portfolio will grow to ~22 million sq ft, generating a projected net operating income (NOI) of approximately ~₹1,100 crore ($130 million) upon completion, leading to an AUM of $1.3 billion (₹11,050 crore). Fund 2 is also tracking a mark-to-market gross return of ~24 percent equity-IRR.

The company’s projects at JNPA and Thane have attracted significant leasing interest, reinforcing their position as premium logistics and business hubs. At JNPA, nearly 30 percent of the warehousing inventory is already pre-leased at premium rents of ₹55-60 per sq ft.

The WTC Thane development is seeing strong pre-leasing traction, with commitments nearing closure at benchmark rates of ₹130-135 per sq ft for urban logistics and ₹150-160 per sq ft for commercial use, reflecting its differentiated offering. Overall, leasing momentum across the portfolio is robust, with total leasing for FY 2024-25 expected to reach ~2.5 million sq. ft., whilst maintaining zero vacancy.

Anshul Singhal, Managing Director, Welspun One, commented: "The rapid commitment of Fund 2 reaffirms our ability to efficiently deploy capital, identify high-quality opportunities, and execute with discipline. At Welspun One, we are building an institutional-grade platform backed by a team with deep decadal expertise in investment, development, and asset management. The launch of our co-investment program is a natural extension of this strategy, allowing us to capitalize on large-scale opportunities while maintaining prudent diversification. As we scale, our focus remains on delivering best-in-class industrial real estate solutions that not only generate superior returns for our investors but also contribute meaningfully to India’s evolving logistics infrastructure."