Welspun One Logistics Parks (WOLP), an integrated fund and development management platform, has entered into a pact with Murugappa Group’s electric vehicle arm Montra Electric to develop a built-to-suit warehousing and dedicated assembly space spread over 3 lakh sq ft in Chennai.
The proposed facility will be constructed within the Welspun One’s logistics and warehousing park in Chennai’s Chinnambedu locality. The mixed-use facility is expected to commence operations by the second quarter of 2024.
The development will also include Montra Electric’s retail experience center along with the assembly space tailored for four-wheeler small commercial electric vehicles.
“This association with Montra Electric helps us in pushing our commitment to sustainable development. We are confident of delivering this mixed-use facility as per Montra Electric’s specifications on time ensuring the facility is operationalised by the second quarter of 2024,” said Anshul Singhal, Managing Director, Welspun One.
According to a senior member from Montra Electric, Welspun One has adeptly addressed the company’s unique power supply needs, a crucial prerequisite for manufacturing of electric vehicles. The facility provides ample parking spaces, ensuring an efficient operational environment.
The Welspun One’s logistics and warehousing park in Chennai is part of an investment memorandum of understanding worth Rs 2,500 crores signed between the company and the government of Tamil Nadu.
Situated along the eastern coast of India, this logistics park has good connectivity through rail and road networks while being in proximity to major seaports in Chennai and Ennore, making it an epicenter for distribution and connectivity.
The company is looking to potentially create an aggregate portfolio of 16-18 million sq ft over the next 4-5 years across first and last-mile facilities in tier 1 and 2 cities. The plan entails an overall investment outlay of over Rs 8,000 crore that can drive the assets under management to $1 billion, Singhal had told in an earlier interaction.
In 2021, WOLP had raised its first AIF worth Rs 500 crore and this was amongst the first such fund raising through domestic investors. This fund committed the entire corpus across six investments aggregating to nearly 6.5 million sq ft within around 1.5 years from its first close. Around 50% of the first fund’s portfolio is leased and delivered.
The portfolio is pre-leased to large and established tenants including Delhivery, Flipkart, FM Logistics, Tata Croma, Ecom Express amongst others with visibility on leasing of the balance portfolio.
The warehousing and logistics segment of real estate has emerged as a relatively immune segment to the shocks of the Covid-19 pandemic and is expected to gain further strength, attracting more investments here on, driven by demand from ecommerce and third-party logistics (3PL) players.