Welspun One Logistics Parks acquires two land parcels in UP, Haryana

Welspun One Logistics Parks acquires two land parcels in UP, Haryana

Welspun One Logistics Parks, a development and asset management platform backed by the $2.7 billion Welspun Group, has entered the northern India real estate market with the acquisition of two land parcels in Lucknow, Uttar Pradesh, and Farrukhnagar in Haryana.

The proposed development, with an investment of Rs 180 crore, will be executed under Welspun One’s first alternate investment fund, Welspun One Logistics Parks Fund I, launched earlier this year.

“We are keen on expanding our footprint across India, including the non-metro market. A recent advancement is the emergence of tier-II and III cities as the new engines of warehousing demand given the backdrop of online shopping through improved internet penetration, supported by income growth and aspirational spend patterns witnessed in the hinterlands,” said Anshul Singhal, managing director, Welspun One Logistics Parks.

With a gross leasable area aggregating to 700,000-800,000 sq ft, the projects will be rented to blue-chip tenants from sectors such as e-commerce, third-party logistics and fast-moving consumer goods.

“The demand for grade-A warehousing multiplied amidst the pandemic and, as we move forward, it is only expected to mature further in a big way. The parks have a potential to create employment opportunities for over 1,500 people across northern India,” said BK Goenka, chairman, Welspun India.

Farrukhnagar has emerged as one of the most sought-after destinations for companies looking at consolidating their warehousing operations and is, therefore, one of the fastest-growing warehousing micro-market in Delhi-National Capital Region (NCR).

The upcoming development, located off the Lucknow-Kanpur highway, will help companies to better service markets such as Kanpur, Agra, Jhansi, Rae Bareilly, Varanasi, Faizabad and Prayagraj, besides the residents of Lucknow.

Welspun One Logistics Parks is aggressively expanding its portfolio and plans to invest about Rs 2,000 crore to develop and lease a portfolio of 7-8 million sq feet of grade-A warehousing spaces across India.

The platform will set up these warehousing parks in pre-identified high-growth markets such as Mumbai, Pune, Bangalore, NCR, Chennai, Kolkata and Lucknow.

According to Singhal, there is significant interest in warehousing spaces among international and domestic investors, both at the project and overall platform level.

Currently, the fund is in advanced discussions with landowners in tier-I cities including Mumbai, Pune, Bengaluru, Delhi and Kolkata to pick up land parcels ranging between 40-75 acres.

The Covid-19 pandemic has led to an increase in demand for warehousing space across the country in the past few quarters, led by the expansion of e-commerce and growth of third-party logistics.

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