[ad_1]
Axis commercial Real Estate Fund, a strategic partnership between Axis Asset Management Company and global real estate developer, owner and operator tishman spireThe fund has raised around Rs 400 crore through the first close, said persons with direct knowledge of the development.
class II alternative investment fund (AIF) is Axis AMC’s alliance with Tishman Spear to develop commercial office properties across major cities in India, while emphasizing sustainability, security and serviceability.
Through this first tie-up in the country between a fund house and an international real estate major, Axis Asset Management Company is raising up to Rs 1,500 crore including the green-shoe option, while Tishman Spears will act as the exclusive development manager for the platform. Will do ,
“In its first stop, Axis Commercial Real Estate Fund A total commitment of Rs 400 crore has been received. The initial closing includes commitments of Rs 150 crore each from Axis AMC and Tishman Spear, apart from investments from family offices, HNIs (high net worth individuals), NRIs (non-resident Indians) and so on,” said one of the above mentioned individuals. .
Axis CRE FundThe strategy is primarily to develop greenfield commercial projects in eight major markets of the country including Mumbai Metropolitan Region, National Capital Region, Bengaluru, Hyderabad, Chennai, Pune, Ahmedabad and Kolkata.
The Fund plans to offer leveraged margin at development stages throughout the commercial real estate project lifecycle.
The specially designed platform by Axis AMC and Tishman Spear intends to invest in early-stage greenfield commercial real estate projects in these key markets, with the objective of providing Grade A office buildings for leasing to established and large corporate occupiers. have to develop.
Tishman will serve as the exclusive development manager for the Spire platform, while Axis Commercial Real Estate Fund will exercise end-to-end control over the project lifecycle across design, development, leasing and property management.
ET’s email query sent to Axis AMC went unanswered at the time of writing.
The fund along with the development partner will own the special purpose vehicle of the project, which in turn will own the land, buildings and assets. The fund intends to use construction finance and waive rent to the optimum extent to support the projects.
The joint investment and development platform seeks to take advantage of the strong demand for office space, the substantial growth seen in Global Competence Centers (GCCs) and the flight to quality seen among leading occupiers.
The commercial real estate market, which was badly affected by the COVID-19 pandemic, is set to make a strong comeback in 2022 with demand for office space steadily improving across major cities in India.
India’s office market net absorption across the top seven cities for the full year grew 46% to 38.25 million sq ft, a three-year high. The performance has also surpassed the five-year pre-pandemic average (2015-2019) of 3.1% and is second only to 2019’s net absorption numbers for the last 10 years, shows JLL India data.
The office property market has not only shown resilience but has also overcome the pandemic-induced challenge of work-from-home model and emergence of hybrid work formats to register record performance.
The demand pipeline for office real estate and pre-commitments remain healthy and are expected to drive performance in 2023.
Industry experts and investors are confident of the long-term potential of the commercial real estate segment. The last 6-8 years have witnessed significant activity and deepening of secondary markets in commercial real estate through participation by both institutional and retail investors.
[ad_2]
Source link