Welspun One to invest Rs 900 crore to develop 110-acre warehousing park near Mumbai
Welspun One Logistics Parks has launched its maiden 110 acre Grade A warehousing park with a leasable area of 3.2 million square feet and an estimated investment of Rs 900 crore in Bhiwandi in Mumbai Metropolitan Region (MMR).
The project is located on prime land with clear legal title, fully owned by the promoters of Welspun Group. The 110 acre project in Bhiwandi entails an estimated investment of Rs 900 crore and has a potential leasable area of approximately 3.2 mn sq ft. Welspun One has also entered into a memorandum of understanding (MoU) with the Maharashtra state government under the Magnetic Maharashtra Initiative. It is in advanced stages of receiving necessary approvals under the state’s Integrated Logistics Parks (ILP) policy. This development is expected to create upwards of 2,700 multi-level job opportunities.
With pre-construction planning and design already in place, the park will be operational by Q4 2021.
Commenting on the project, BK Goenka, Chairman, Welspun Group, said, “This development has further cemented our focus in the warehousing sector. We are optimistic and view this as one of the only asset classes, especially in the current context, which provides both attractive development returns and stable long-term yields.” Anshul Singhal, Managing Director, Welspun One, said the park in Bhiwandi is well suited to meet the requirements of a large number of end-users, including e-commerce, 3PL, FMCG/FMCD, modern retail and pharmaceutical industries. He added that the project is seeing significant interest from international and private equity investors. The promoter’s equity obligations towards the project have been met in the form of land, the market value of which is estimated to be Rs 350 crore.
The project is being developed in phases, with the necessary financing already tied-up, alongside a construction loan, which will be converted into a Lease Rental Discounting (LRD) facility on completion of each phase. The park will be built on key sustainability features, such as solar panels for common facilities, to provide tenants with an alternative source of power, landscape strategies to minimise water consumption, rainwater harvesting systems, electrically operated doors and a sewage treatment plant of suitable capacity.
Other COVID-19 ready park features include contactless verification for entry/exit of people and vehicles, mandatory health declaration on an app, ultraviolet disinfection, and other automated safety and hygiene checks. The park will rely on software, sensors and digital interfaces to streamline compliances. According to a recent report by property consultant Knight Frank India, there was an 11 percent decline in warehousing demand during FY19 at 41.3 million sq ft across eight major cities due to the economic slowdown. The demand for warehousing, which also includes industrial space for light manufacturing, stood at 46.4 million sq ft in 2018-19 across eight cities -- National Capital Region, Mumbai, Ahmedabad, Pune, Bengaluru, Kolkata, Chennai and Hyderabad, the report stated.