CARGOCONNECT-JUNE2026 - Flipbook - Page 76
FEATURE Logistics Real-Estate
Structured credit provides developers access to
disciplined, milestone-linked capital, enabling the
development of built-to-suit, compliant warehousing
aligned with occupier needs in terms of scale, design,
and location. It reduces dependence on upfront equity,
increases Return on Equity (ROE) and allows projects
to be executed with better planning and timelines.
SAURABH GUPTA
CEO – Fund Management, Welspun One
76 | CARGOCONNECT JUNE 2026
infrastructure, automation, and design improvements
that are specific to tenant needs, while structured
昀椀nancing also brings stricter rules for compliance and
governance aligned with global standards.”
This alignment between 昀椀nancing discipline and
operational capability is strengthening tenant con昀椀dence
across warehousing ecosystems. As Jain points out,
“This not only improves asset quality but also builds
tenant confidence, making BTS warehousing more
scalable and aligned with institutional expectations.”
Importantly, structured credit is also playing a
bridging role across the warehousing investment
lifecycle—connecting early-stage development with
long-term institutional ownership. As Gupta observes,
“Structured credit has fundamentally provided the key
to unlocking lands and bridging the gap from investment
to exit, and as availability has grown, especially with
global expansion in credit markets and a maturing
warehousing and industrial sector at home, it has clearly
powered expansion in the Indian warehousing sector.”
AIFs as Catalysts for India’s
Integrated Logistics Parks
Expansion
India’s logistics real-estate landscape is steadily expanding
beyond standalone warehousing assets toward larger,
integrated logistics ecosystems that combine storage,
transportation connectivity, and value-added services
within uni昀椀ed infrastructure platforms. Multi-Modal
logistics parks (MMLPs), in particular, are emerging
as critical nodes within this transition, supported by
policy initiatives, industrial corridor development, and
increasing alignment with multimodal freight strategies.
However, the scale, complexity, and long gestation
cycles associated with these developments require a
fundamentally di昀昀erent 昀椀nancing approach—one that
extends beyond traditional debt structures.
In this context, AIFs are playing an increasingly
central role in enabling the expansion of integrated
logistics parks by providing 昀氀exible, patient capital
aligned with long-term infrastructure development
cycles. With SEBI data indicating that India’s AIF industry
has crossed `15 lakh crore in commitments, and over
`74,000 crore already deployed into real-estate by
FY2025, the growing depth of domestic institutional
capital is becoming a de昀椀ning factor in shaping the
next phase of logistics infrastructure growth.
From a capital-intensity point of view, Gupta
explains, “MMLPs require signi昀椀cantly higher capital
compared to standard warehousing projects, given
their scale, infrastructure requirements, and longer
development timelines.” He further notes that land
aggregation, connectivity to road, rail, and ports, and
phased development all require patient capital that can
stay invested through the entire lifecycle, underlining
why conventional 昀椀nancing models often fall short in
supporting such developments.
“Domestic institutional capital is therefore becoming important, as it is better aligned to long-term
development and the risk profile prevailing in our
markets, not dependent on short-term global cycles,”
Gupta emphasises.
