Welspun One Private Limited, a leading player in the warehousing sector, has successfully divested its warehousing project in Farrukhnagar, Gurugram. The transaction, valued at INR 900 million (~USD 11 million), marks another milestone for the company.
An Impressive Warehousing Facility
The Farrukhnagar project boasts a sprawling 2.9 lakh sq. ft. grade-A warehousing facility spread across approximately 13 acres of land. Situated in the National Capital Region (NCR), the project is strategically located near the KMP Expressway and National Highway 48. Its close proximity to these major transportation routes adds tremendous value to the warehouse. At present, the facility is occupied by a prominent third-party logistics player operating under a long-term lease. This establishes the project as a standout success, not only with regards to its development but also its commercial viability.
A Testament to Welspun One’s Execution capabilities
The completion of this transaction highlights the end-to-end proficiency of Welspun One. From the acquisition of the land to the construction, development, and leasing, they have successfully managed the entire lifecycle of the project within a remarkably short period of approximately two years. Furthermore, this divestment showcases the attractiveness of the Indian warehousing sector to institutional investors on a global scale. With this acquisition of a pre-leased, modern facility, the potential for returns in India’s warehousing industry is evident.
Instrumental Advisers
Welspun One partnered with Anarock Capital Advisors as the exclusive investment bankers for the transaction. They played a critical role in facilitating the divestment of the Farrukhnagar project and maximizing its value. Additionally, Trilegal and Aeka Advisors provided expertise as the project’s legal and tax counsels respectively. Their support and guidance ensured the smooth execution of the transaction within the legal and regulatory framework.
A Pioneer in the Indian Market
Balkrishan Goenka, Chairman of Welspun World, shared his pride in pioneering India’s inaugural warehousing Alternative Investment Fund (AIF) for domestic investors. By offering them an opportunity to participate in an industry traditionally dominated by foreign institutional investors, Welspun One has contributed to the growth of India’s economy. The company’s SEBI-governed AIF showcases the concept of real estate financialization, allowing investors to engage in the asset creation cycle with the highest standards of governance and transparency. This approach eliminates the complexities associated with owning and operating physical real estate properties.
Achieving Success Amidst Market Challenges
Anshul Singhal, Managing Director of Welspun One, expressed his excitement about the company’s strong start this year. As the first company to mobilize significant domestic capital for the warehousing segment, this divestment serves as an exceptional validation of their investment strategy. Singhal emphasized the notable quality of their products, robust processes, and the resilience of the warehousing sector. In today’s dynamic market environment, businesses are finding significant value in warehousing investments due to low risk, rapid development cycles, and easy monetization. The fact that the project was purchased by one of Asia’s largest institutional real estate investors further proves the global appeal of Welspun One’s approach.
Paving the way for Future Growth
Welspun One’s unwavering commitment to creating grade-A warehouses and prioritizing governance, transparency, and compliance solidifies its position in India’s warehousing industry. The company remains dedicated to identifying and maximizing opportunities for its investors, setting a strong precedent for future endeavors. With Welspun One leading the way, India’s warehousing growth story stands out on both domestic and international fronts. As the company continues its impressive journey, it is poised to contribute significantly to India’s economic landscape.
