Axis-Tishman Speyer real estate fund acquires Chennai land parcel to develop 4 lakh sq ft of office space

The acquisition is the first investment from the Axis Commercial Real Estate Fund.

Axis Commercial Real Estate Fund, a partnership between Axis Asset Management Company Limited (Axis AMC) and real estate developer Tishman Speyer, has acquired a 1.5-acre land parcel in Chennai's Fintech City, the company announced on August 12.

Located in Nandambakkam, the land is valued at Rs 50 crore per acre, sources said. The acquired land will have a development potential of 400,000 sq ft of Grade A office building within the next three years.

The acquisition was made through a bid cum e-auction process conducted by the Tamil Nadu Industrial Development Corporation (TIDCO).

This is the first investment from the Axis Commercial Real Estate Fund, a Category II AIF that concluded its fundraising in June 2024 with a corpus of approximately Rs 550 crore.

The fund employs a distinctive strategy of participating in the development phase of commercial real estate projects through a strategic alliance with Tishman Speyer. The fund's focus is on investing primarily in early-stage or green-field commercial real estate projects across eight key markets, to create top-tier office spaces to attract leading tenants.

"Chennai investment is the epitome of the fund strategy; wherein a clear titled land parcel supported by single window clearance for approvals at city-centric location has been acquired transparently by the fund. The fund is completely aligned and will seek to benefit from TIDCO’s vision and strategy of the Fintech City," Chetan Shah, Head – Real Estate, Axis AMC said.

Chennai has emerged as an attractive location for multinational companies, including our customers within BFSI segments, Parvesh Sharma, Managing Director and India Country Head for Tishman Speyer added.

To date, Axis AMC has managed to raise over Rs 6000 crore across its PMS and AIF businesses across capabilities including real estate, private equity, structured credit, quantitative and listed equities.