Welspun One Fund I, is 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 booming warehousing and industrial real estate sector in India.
INVESTMENT
OBJECTIVE
The fund has a target size of INR 500crore with a tenure of 4 years and a hurdle rate of 15% with a significant commitment from the Welspun promoter family office of INR 75 crore. The fund is fully managed by Welspun One, key distributors of which are Sanctum Wealth Management, Edelweiss Finance and Incred.
Welspun One’s investment strategy is focused on sourcing and developing feasible land parcels which suit institutional investors and get leased by valued occupiers, whilst maintaining high levels of compliance, safety and zero tolerance to regulatory lapses across the project life-cycle.
The investment thesis of our fund is 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 ‘AAA’ credit tenants from sectors such as e-commerce, FMCG, third-party logistics (3PL’s), pharma and auto-ancillaries.
We will deploy the raised capital to develop about 300-acres of Grade-A and logistics space pan-India with our immediate focus being seven cities namely Mumbai, Pune, Bagalur, Chennai, Kolkata, NCR and Lucknow. This includes our under-construction flagship 110-acre park with a leasable area of approx. 3 million sq. ft. in Bhiwandi, Maharashtra.
Investment Strategy
The Investment Strategy Of The Fund Is As Follows:
Focus Cities
- Our list of planned locations for our projects is a result of extensive research, analysis and real time knowledge of investments, development and leasing.
- Our immediate focus is on 6 cities: Mumbai, Pune, Bagalur, Chennai, Kolkata, NCR.
Portfolio Allocation
- Pre-leased (0-30%): Investment in yielding assets that have stabilized rentals and long term growth potential
- Built-to-Suit-Development (0-100%): Investment via SPV’s to buy, build and lease Grade-A warehouses which are in accordance with pre-committed tenant specifications
Exit Strategy
- Portfolio or project level sale to global institutional investors
- Project level sale to domestic HNIs and Family Offices
- Offer the entire portfolio for sale to a listed REIT
Compliant & Grade A Assets
- Maintaining high levels of compliance, safety and zero tolerance to regulatory lapses across the project lifecycle
- Using a combination of technology and processes in an integrated manner to develop Grade A warehousing parks across the country
Leasing Forms The Core
- Clear visibility of tenant's micro-market demands, technical specification, and other continually evolving requirements
- Strong relationships with leading tenants such as ecommerce, 3PL, FMCG/ FMCD, Manufacturing and Retail end users.
Welspun One Business Model
Management
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Originate High Quality Deal Flow
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Deal Underwriting and Structuring
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Portfolio Management and Divestment
Management
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Design, Approvals
& Project Delivery -
Lease Management
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Asset Management
Welspun One Credentials
In-house team of over 30 professionals with institutional expertise in investment, development and asset management and a deep understanding of the local nuances
The management team comes with a cumulative real estate experience of 150+ years and a deep-rooted track record:
Delivered over 95 mm sf. of construction projects
Transacted 2900+ acres of land
Managed ~USD 2 Bn of real estate fund
Signed 30+ tenants
Executed projects across 10+ states