Nuvama-Cushman & Wakefield’s JV surpasses target corpus for office fund
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Nuvama-Cushman & Wakefield’s JV surpasses target corpus for office fund

By Priyal Mahtta

  • 23 Jan 2025
Nuvama-Cushman & Wakefield’s JV surpasses target corpus for office fund
Credit: 123RF.com

The joint venture between Nuvama Asset Management and Cushman & Wakefield, which launched its maiden real estate fund last year to invest in office properties in India, has marked the first close.  

The JV has crossed the target corpus limit to raise Rs 1,700 crore, it said on Thursday. It aims to secure another Rs 1,300 crore in the next two quarters, a top executive said. 

The Prime Offices Fund, which has a target corpus of Rs 1,500 crore and green shoe option of an equal additional amount, was announced in January last year, while it was awaiting regulatory approvals. The investment vehicle is a category-II alternative investment fund (AIF) registered with the Securities and Exchange Board of India (SEBI). 

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The vehicle has a mandate to back office assets in key micro-markets in India's top six cities—Bengaluru, Delhi –National Capital Region, Pune, Mumbai, Chennai, and Hyderabad. It will target investments in new commercial developments, completed and leased assets. 

The first closing milestone will allow the JV to start deploying the capital raised. The fund manager has “already built a robust deal pipeline for deployment”, according to a statement. 

“We intend to achieve the targeted Rs 3000 crore fund size in the next two quarters,” said Anshu Kapoor, president and head, Nuvama Asset Management. He added that the fundraising efforts were started about nine months ago.  

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During the fund’s announcement last year, the Kapoor had said that the JV will initially focus on offering investment opportunities to domestic investors as the space has traditionally been dominated by foreign institutional players.  

As for Cushman & Wakefield, a US-headquartered global commercial real estate services firm, the JV was part of its efforts to expand its presence in the fund management space.   

In its report on India’s office real estate sector’s growth during the July-September quarter, the US-based firm said that gross leasing volume in India’s top eight markets rose to 24.8 million square feet, which is 66% higher on a year-on-year basis, and about 14% sequentially. This growth was led by Bengaluru. 

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“The office market continued to strengthen in the third quarter on the back of faster closures of large deals by global multinationals across major cities, with global capability centres (GCCs) being a major focus area, and healthy demand even from domestic enterprises,” it said. 

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