Welspun One Logistics Parks (WOLP), a pan-India asset management and development platform, part of the Welspun Group, announced that it has acquired 40 acre of land, located on the Malur-Hosur road, to set up a large-scale warehousing facility. With a development potential of ~1 million square feet and a total project cost of Rs 300 crore, the facility will service the Bengaluru Metropolitan region’s (BMR’s) industrial and warehousing demand for space.
Bangalore has historically been a warehousing supply starved market with 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 both warehousing and industrial space in Bangalore is expected to be ~15-20 million square feet over the next 3 years. This acquisition comes at an opportune time giving WOLP an early mover advantage while helping the firm capitalize on the shifting customer preference towards Grade A warehouses.
Talking about the strategic expansion, B K Goenka, Chairman, Welspun Group said, “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. WOLP has made significant progress in supporting the county’s warehousing network in a short span of time – from our flagship Park in Bhiwandi, Maharashtra to the more recent acquisitions in Farukhnagar, Haryana and Lucknow, Uttar Pradesh. Our current acquisition will deepen our Fund Portfolio as well as strengthen our vision of being a pan India warehousing player.”
Anshul Singhal, MD, Welspun One Logistics Parks further elaborated, “The land by virtue of being easily accessible via the Sarjapur road is located close to the residential and IT catchments of South-East Bangalore. It also has the added advantage of benefitting from the well-established industrial ecosystem in Hosur. Our efforts to build top class warehousing facilities in this region will greatly benefit occupiers including E-commerce/3PL/end users along with industrial and engineering companies with operations in the state.”
This is the first of six projects as part of the Memorandum of Understanding (MoU) that Welspun One recently signed with the Government of Tamil Nadu’s nodal agency to set up warehousing facilities across the region. The projects, to be executed under the MoU, are expected to bring in direct investments of approximately Rs 2,500 crore to the state.