Key Takeaways
- • Nuvama Asset Management and Cushman & Wakefield form a 50:50 joint venture entity (NCW) to launch the PRIME Offices Fund targeting INR 3,000 crore ($360 million) in capital for Indian commercial real estate investments.
- • The PRIME Offices Fund will focus on Grade A+ office spaces across India's top six cities—Bengaluru, NCR, Pune, Mumbai, Chennai, and Hyderabad—which collectively account for over 70% of India's office leasing activity.
- • The fund will invest across new builds, completed assets, and leased properties, targeting micro markets in high-growth regions as India's office sector forecasts 40 million square feet of annual demand through 2027, representing approximately 50% of Asia Pacific office absorption.
- • The joint venture combines Nuvama's fund management expertise in alternatives with Cushman & Wakefield's global commercial real estate services capabilities, positioning domestic investors in a sector traditionally dominated by global capital.
- • NCW has applied to SEBI for approval to launch the PRIME Offices Fund, marking a strategic entry point for institutional and domestic investors into India's commercial office market during a period of strong economic growth and corporate expansion.
Summary
Nuvama Asset Management and Cushman & Wakefield announced on January 10, 2024, the formation of a new 50:50 joint venture entity, Nuvama and Cushman & Wakefield Management Private Limited (NCW), designed to establish a differentiated investment platform in India's commercial real estate sector. The partnership aims to raise INR 3,000 crore ($360 million) through its flagship fund, the PRIME Offices Fund, which will invest exclusively in Grade A+ office spaces across India's highest-performing commercial markets.
The PRIME Offices Fund targets prime office assets across six major metropolitan areas: Bengaluru, NCR, Pune, Mumbai, Chennai, and Hyderabad. These markets represent over 70% of India's total office leasing activity and serve as the nation's primary growth drivers. The fund will deploy capital across the full investment spectrum, including new construction projects, completed and stabilized assets, and fully leased properties. This diversified approach provides investors with exposure to different risk-return profiles within the office sector.
India's office real estate market presents compelling fundamentals for institutional capital. According to Cushman & Wakefield's Chief Executive for Asia Pacific Matthew Bouw, India is positioned as a standout performer both regionally and globally, with average demand forecasted at approximately 40 million square feet annually through 2027. Notably, India's projected net absorption is expected to account for roughly 50% of total office demand across the Asia Pacific region, reflecting the country's strength as a capability and innovation center for multinational corporations, combined with its robust economic growth trajectory and deep talent pool.
The joint venture structure leverages complementary capabilities: Nuvama contributes superior fund management expertise within the alternatives space, while Cushman & Wakefield brings extensive global commercial real estate industry knowledge and market intelligence. Together, they aim to democratize access to institutional-quality office real estate investments for domestic investors—a market segment traditionally dominated by global capital allocators. The PRIME Offices Fund has applied to India's Securities and Exchange Board (SEBI) for regulatory approval, with Ashish Kehair, Managing Director and CEO of Nuvama Group, noting that commercial real estate represents a direct beneficiary of India's broader economic expansion and has successfully attracted high-quality institutional global capital.
The PRIME Offices Fund targets prime office assets across six major metropolitan areas: Bengaluru, NCR, Pune, Mumbai, Chennai, and Hyderabad. These markets represent over 70% of India's total office leasing activity and serve as the nation's primary growth drivers. The fund will deploy capital across the full investment spectrum, including new construction projects, completed and stabilized assets, and fully leased properties. This diversified approach provides investors with exposure to different risk-return profiles within the office sector.
India's office real estate market presents compelling fundamentals for institutional capital. According to Cushman & Wakefield's Chief Executive for Asia Pacific Matthew Bouw, India is positioned as a standout performer both regionally and globally, with average demand forecasted at approximately 40 million square feet annually through 2027. Notably, India's projected net absorption is expected to account for roughly 50% of total office demand across the Asia Pacific region, reflecting the country's strength as a capability and innovation center for multinational corporations, combined with its robust economic growth trajectory and deep talent pool.
The joint venture structure leverages complementary capabilities: Nuvama contributes superior fund management expertise within the alternatives space, while Cushman & Wakefield brings extensive global commercial real estate industry knowledge and market intelligence. Together, they aim to democratize access to institutional-quality office real estate investments for domestic investors—a market segment traditionally dominated by global capital allocators. The PRIME Offices Fund has applied to India's Securities and Exchange Board (SEBI) for regulatory approval, with Ashish Kehair, Managing Director and CEO of Nuvama Group, noting that commercial real estate represents a direct beneficiary of India's broader economic expansion and has successfully attracted high-quality institutional global capital.
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