On Tuesday, Welspun One Logistics Parks (WOLP) announced that the acquisition of 40 acres of land near Bengaluru to set up around 1-million sq ft of a large-scale warehousing facility at an investment of Rs 300 crore to service Bengaluru Metropolitan Region (BMR).
As part of the memorandum of understanding (MoU) this is the first of six projects that Welspun One recently has signed with the Tamil Nadu government’s nodal agency to set up warehousing facilities across the region, WOLP said.
The projects, to be executed under the MoU, are likely to bring direct investments of approximately Rs 2,500 crore to the state, Welspun One said in a release.
Welspun Group-backed WOLP is an integrated fund, development and asset management platform, designed to deliver large format and institutional Grade-A logistics parks across the country.
WOLP said that Bengaluru has historically been a warehousing supply starved market with a limited institutional developer presence in the Grade A space. However, demand has witnessed a significant uptick on the back of the post-COVID e-commerce boom.
As per research estimates by various International Property Consultants (IPCs), demand for warehousing and industrial space in Bengaluru is expected to be around 15-20 million square feet over the next three years.
This acquisition comes at an opportune time giving WOLP an early mover advantage while helping the firm capitalise on the shifting customer preference towards Grade-A warehouses, it said.
The land for the project has been acquired on the Malur-Hosur Road to set up a large-scale warehousing facility, which will service the Bengaluru Metropolitan region’s industrial and warehousing demand for space, the release said.
B K Goenka, Chairman, Welspun Group on the strategic expansion said that it has a development potential of around 1-million square feet of space with a total project cost of Rs 300 crore, it stated. South India has always been an important market for us, and this is a crucial first step towards building a presence in the region by developing logistics infrastructure.
South India has always been an important market for us, and this is a crucial first step towards building a presence in the region by developing logistics infrastructure, said B K Goenka, Chairman, Welspun Group on the strategic expansion.
WOLP has made significant progress in supporting the county’s warehousing network in a short period –from our flagship Park in Bhiwandi (Maharashtra) to the more recent acquisitions in Farukhnagar, Haryana and Lucknow (Uttar Pradesh), he said.
Goenka added, our current acquisition will deepen our Fund Portfolio as well as strengthen our vision of being a pan-India warehousing player.