Welspun One Logistics Parks (Wolp), a warehousing and industrial real estate integrated fund and development management platform, has announced the creation of its second alternative investment fund (AIF).
The Wolp Fund 2 will have a target corpus of Rs 2,000 crore (USD 243 million), a six-year duration, and a Rs 1,000 crore green shoe option. According to the platform, the company’s initial fund raised Rs 500 crore (USD60.8 million), signalling an intention to nearly fivefold its assets under management (AUM) with its next fund.
Wolp, a subsidiary of the Welspun Group, will acquire land parcels in high-demand, pre-identified areas and create Grade-A storage parks that will be leased on a long-term basis to tenants from a variety of industries.
It claims that its portfolio has gained traction on the ground, with around 50 per cent of the portfolio projected to be physically delivered, leased, and operational by mid-CY23.
According to the platform, Wolp Fund-1’s inception-to-date gross internal rate of revenue (IRR) is 21 per cent based on its net asset value as of 30 September (NAV).
The fund intends to expand geographically within India, investing and developing 8-12 million square feet in in-city projects in metros such as Mumbai, Delhi, and Bangalore, as well as smaller tier II cities.
360 One (previously IIFL Wealth & Asset Management) has agreed to be the AIF’s primary distributor.