Key Takeaways
- • Nuvama Asset Management and Cushman & Wakefield have formed a joint venture entity named Nuvama and Cushman & Wakefield Management to launch a Rs 3,000-crore (approximately $360 million) commercial real estate fund targeting domestic investors.
- • The fund will deploy capital across 5-7 grade-A office properties in India's six largest office markets: Bengaluru, Delhi-NCR, Pune, Mumbai, Chennai, and Hyderabad, with a focus on assets that are completed or nearing completion.
- • Nuvama Asset Management (formerly Edelweiss Wealth Management) contributes fund management expertise and serves 1.1 million clients domestically, while Cushman & Wakefield brings global commercial real estate services capabilities and operational infrastructure.
- • India's commercial office sector shows significant growth momentum, with Bengaluru leading net office space additions at 71 million sq ft, followed by Hyderabad and Delhi-NCR at 43 million sq ft each, positioning the fund to capitalize on a high-growth market.
- • The joint venture has already identified several acquisition targets and aims to achieve the Rs 3,000-crore target fund size within two quarters, having applied for SEBI approval for the PRIME Offices Fund.
Summary
Nuvama Asset Management and Cushman & Wakefield announced the formation of a joint venture on January 10, 2024, to establish a Rs 3,000-crore commercial real estate fund targeting institutional and domestic investors. The new entity, to be known as Nuvama and Cushman & Wakefield Management, represents a strategic partnership combining Nuvama's asset management expertise and domestic distribution network with Cushman & Wakefield's global commercial real estate services capabilities.
The fund will concentrate its investment activities across India's major office markets, specifically targeting five to seven prime office properties in Bengaluru, Delhi-NCR, Pune, Mumbai, Chennai, and Hyderabad. According to Anshu Kapoor, president and head of Nuvama Asset Management, the joint venture has already identified several grade-A properties that are either completed or nearing completion, indicating a mature pipeline for near-term deployment. The fund intends to raise its full Rs 3,000-crore corpus within the next two quarters and has submitted an application to SEBI for approval of its first vehicle, the PRIME Offices Fund.
The timing of the fund launch aligns with favorable market dynamics in India's commercial real estate sector. Bengaluru leads net office space additions in the Asia Pacific region outside Shanghai, with 71 million sq ft of new supply, followed by Hyderabad and Delhi-NCR with 43 million sq ft each, Mumbai with 32 million sq ft, Pune with 26 million sq ft, and Chennai with 16 million sq ft. This geographic diversification strategy reduces concentration risk while capturing growth across India's most dynamic office markets.
Nuvama Asset Management, the asset management arm of Nuvama Wealth Management, brings institutional-grade fund management expertise and an established client base of 1.1 million individuals domestically. Matthew Bouw, CEO of Cushman & Wakefield Asia Pacific, and Anshul Jain, managing director of Cushman India & Southeast Asia, will oversee execution of the joint venture's commercial real estate strategy, leveraging the firm's established market intelligence and asset management infrastructure across the Asia Pacific region.
The fund will concentrate its investment activities across India's major office markets, specifically targeting five to seven prime office properties in Bengaluru, Delhi-NCR, Pune, Mumbai, Chennai, and Hyderabad. According to Anshu Kapoor, president and head of Nuvama Asset Management, the joint venture has already identified several grade-A properties that are either completed or nearing completion, indicating a mature pipeline for near-term deployment. The fund intends to raise its full Rs 3,000-crore corpus within the next two quarters and has submitted an application to SEBI for approval of its first vehicle, the PRIME Offices Fund.
The timing of the fund launch aligns with favorable market dynamics in India's commercial real estate sector. Bengaluru leads net office space additions in the Asia Pacific region outside Shanghai, with 71 million sq ft of new supply, followed by Hyderabad and Delhi-NCR with 43 million sq ft each, Mumbai with 32 million sq ft, Pune with 26 million sq ft, and Chennai with 16 million sq ft. This geographic diversification strategy reduces concentration risk while capturing growth across India's most dynamic office markets.
Nuvama Asset Management, the asset management arm of Nuvama Wealth Management, brings institutional-grade fund management expertise and an established client base of 1.1 million individuals domestically. Matthew Bouw, CEO of Cushman & Wakefield Asia Pacific, and Anshul Jain, managing director of Cushman India & Southeast Asia, will oversee execution of the joint venture's commercial real estate strategy, leveraging the firm's established market intelligence and asset management infrastructure across the Asia Pacific region.
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