Monday, December 23, 2024

Nuvama and Cushman & Wakefield Forge Strategic Partnership for Prime Offices Fund in Indian Commercial Real Estate

Nuvama Asset Management and Cushman & Wakefield, a leading global commercial real estate services firm, have joined forces to establish a 50:50 joint venture called Nuvama and Cushman & Wakefield Management Pvt Ltd (NCW). This strategic collaboration aims to create a platform offering professional services to assist high-net-worth individuals in India in investing in commercial real estate. The joint venture plans to launch its first real estate fund, seeking approval from the Securities and Exchange Board of India (SEBI) to raise ₹3,000 crore for investments in prime commercial properties across high-growth markets in India.

The Prime Offices fund, the inaugural venture of Nuvama and Cushman & Wakefield Management Pvt Ltd, is designed to invest in Grade A+ offices within the top three micro markets of six major cities, including Mumbai, Bengaluru, NCR, Pune, Chennai, and Hyderabad. These cities collectively account for over 70% of leasing activity in India. The fund will target investments in new buildings (less than one year from completion), completed, and leased assets.

The joint venture seeks to empower investors with superior fund management expertise through Nuvama while leveraging Cushman & Wakefield’s global proficiency in the commercial real estate industry. Notably, the collaboration aims to open up investment opportunities in the Indian commercial real estate market for domestic investors, traditionally a domain dominated by global investors.

Anshu Kapoor, President and Head of Nuvama Asset Management, highlighted that domestic investors have faced challenges in managing commercial real estate assets in the past, resulting in under-allocation or fragmented ownership. The partnership intends to combine the strengths and scale of both companies to provide comprehensive solutions to investors in India. Nuvama’s ability to understand the needs of investors across different tiers, coupled with Cushman & Wakefield’s global leadership, positions the joint venture for success.

Anshul Jain, Managing Director for India & Southeast Asia and Head of Asia Pacific Tenant Representation, emphasized the resilience of the Indian office sector, projecting strong growth fueled by economic expansion, a burgeoning working population, and increased demand for Grade A+ office assets. With the forecasted net absorption in India accounting for 50% of total office demand in the Asia Pacific region, the collaboration aims to tap into the compelling opportunities presented by India’s robust office sector performance.

Matthew Bouw, CEO of Cushman & Wakefield Asia Pacific, noted that India remains a standout player in the global office sector, driven by strong economic growth, a thriving talent pool, and the country’s reputation as a capability and innovation hub. The office sector’s outstanding performance offers an attractive investment opportunity for those seeking exposure to India’s growth trajectory and economic strength.

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