Nuvama Asset Management, the alternatives-focused asset management arm of Nuvama Wealth Management Ltd, has entered into a joint venture with real estate services firm Cushman & Wakefield to raise Rs 3,000 crore commercial real estate fund.
In a regulatory filing on January 10, the AMC said that the new entity, named Nuvama and Cushman & Wakefield Management Private Limited (NCW), will offer a full suite of capabilities for investing in commercial real estate.
NCW’s first real-estate fund – Prime Offices Fund – will invest in Grade A+ office spaces in micro markets across Bengaluru, NCR, Pune, Mumbai, Chennai and Hyderabad, which account for more than 70 percent of India's leasing activity. The fund will look at investing across new builds, and completed and leased assets.
“The Prime Offices fund will allow us to tap the immense potential of India’s office sector and offer investors unparalleled access to diverse, high-yield real estate opportunities," Anshul Jain, managing director, of India & Southeast Asia, said.
Through the joint venture, Nuvama will provide investors with better fund-management insights, while Cushman & Wakefield will offer its expertise in commercial real estate. It will also focus on providing opportunities to domestic investors in Indian commercial real estate, which has traditionally been dominated by global investors, the statement added.
“India continues to be a standout player in the office sector both regionally and globally," said Matthew Bouw, chief executive, of Asia Pacific, Cushman & Wakefield. “With average demand forecasted at around 40 million square feet a year through 2027, India’s forecasted net absorption is expected to account for around 50% of total office demand in Asia Pacific."
“We are seeing growing domestic investor interest, which has so far remained an experimental play for most because of paucity of well-scaled local vehicles in the pre-REIT space," said Ashish Kehair, managing director & CEO, Nuvama Group.
Nuvama oversees Rs 2,89,281 crore of client assets and caters to a diverse set of customers, including about 3,300 of India’s most wealthy families. It offers wealth-management solutions, investment advisory and estate planning among other things. Cushman & Wakefield, which has 400 offices across 60 countries, provides real estate services for property owners and occupiers.
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