Kotak Alts-managed fund sells Delhi office space to Nuvama-Cushman fund, deal valued at Rs 700-750 cr

Kotak Alts-led consortium acquired the property through the IBC process

Prime Offices Fund, a commercial real estate-focused alternative investment fund managed by a joint venture of private equity firm Nuvama Asset Management and property consultants Cushman & Wakefield, has bought a 300,000 square feet office space, Prius Platinum, from a fund managed by a consortium led by Kotak Alternate Asset Managers, or Kotak Alts.

Both Prime Offices Fund and Kotak Alts declined to comment on the consideration of the deal. However, market sources say that the deal size was in the range of Rs 700 crore to Rs 750 crore. The Prime Offices Fund, managed by the entity Nuvama and Cushman & Wakefield Management Pvt Ltd (NCW), has a targeted raise of Rs 3,000 crore, of which it announced its first close of Rs 1,700 crore in January 2025.

Property consultancy JLL served as the transaction advisor for the deal.

"This rare, institutionally owned asset perfectly aligns with the Prime Offices Fund’s (PRIME) strategy of creating a high quality, sustainable, income-generating portfolio. With India’s commercial real estate sector continuing to show strong fundamentals, this acquisition marks an important milestone in delivering world-class investment solutions for our investors," said Gaurav Puri, chief investment officer at NCW.

The building, located in south Delhi's Saket, is 95 percent leased, with a weighted average lease expiry (WALE) of five years, according to a release by Kotak Alts, which also includes lock-in periods, ensuring longer-term and stable rental income. The tenants include major law firms, as well as companies in pharmaceuticals and financial services, among others.

The Kotak Alts-led consortium had acquired the Prius Platinum asset through the insolvency and bankruptcy code (IBC) process. They added in a release that after acquisition, the consortium put in place a process of "transformation" for the asset, including various upgrades, environment, social and governance (ESG)-related measures, and enhancing operational performance, which led to more leasing activity.

"We are proud of the journey this asset has undergone — from acquisition through IBC to a complete revival as a state-of-the-art, ESG-compliant commercial hub. This sale is a testament to the strength of our asset management capabilities and our ability to create long-term value for stakeholders through sustainability-focused strategies," said Rahul Chhaparwal, partner at Kotak Alts, in a statement.