Welspun One Private Limited (“Welspun One”) is delighted to announce the successful completion of divestment of its warehousing project located in Farrukhnagar, Gurugram held by Welspun One Logistics Parks Fund 1, in a transaction valued at INR 900 million (~USD 11 million).
The Farukhnagar project encompasses an impressive 2.9 lakh sq. ft. grade-A warehousing facility spread across a ~13-acre land parcel in the National Capital Region (NCR). Located within an established warehousing cluster of NCR, it is strategically positioned in close proximity to the KMP Expressway and National Highway 48. The project is currently occupied by a prominent third-party logistics (3PL) player under a long-term lease.
The project exemplifies Welspun One's execution capabilities, showcasing a comprehensive journey from land acquisition, construction, development, and leasing culminating in a successful exit – all achieved within an approximately two-year timeframe. The acquisition of this pre-leased, modern facility further underscores the global allure of the Indian warehousing sector among institutional investors.
Anarock Capital Advisors were the exclusive investment bankers to Welspun One Logistics Parks Fund 1 for the transaction, while Trilegal and Aeka Advisors were the legal and tax counsels respectively.
Balkrishan Goenka, Chairman, Welspun World commented, "India plays a pivotal role in driving Asian and global economic growth. Our pioneering warehousing initiatives are poised to significantly contribute to India's standing in the broader economic landscape. We take pride in having pioneered India's inaugural warehousing Alternative Investment Fund (AIF) designed for domestic investors, offering them with an opportunity to partake in the flourishing warehouse industry, otherwise dominated by foreign institutional investors. Our SEBI-governed AIF showcases the concept of real estate financialization by enabling seamless investor participation across the entire asset creation cycle through a financial instrument with the highest standards of governance and transparency without the hassles of owning and operating physical real estate."
Anshul Singhal, Managing Director, Welspun One highlighted the significance of this achievement and said, “We are elated to have started the year strongly, which showcases the prowess of our platform – we were the first to mobilise substantial domestic capital for the warehousing segment, and have demonstrated the success of our investment strategy with this exit. This landmark transaction is a testament to the exceptional quality of our products, robust processes, and the resilience of warehousing as a sector. The sale of the project to one of Asia's largest institutional real estate investors underscores the global appeal of our approach. Warehousing, with its low risk, rapid development cycles, and easy monetization, is proving to be a stellar investment avenue in today's dynamic market environment."
Welspun One, with its commitment to creating grade-A warehouses, coupled with a focus on governance, transparency and compliance is well-positioned to play a crucial role in India's warehousing growth story. Welspun One remains dedicated to identifying and maximising opportunities for its investors, and this successful exit sets a strong precedent for future endeavours.
