Axis Commercial Real Estate Fund Acquires Prime Land in Chennai's Fintech City
Axis Commercial Real Estate Fund, a collaboration between Axis Asset Management Company and Tishman Speyer, has acquired a 1.5-acre land parcel in Chennai's Fintech City, marking its first investment.
Axis Commercial Real Estate FundTishman SpeyerChennaiFintech CityReal Estate InvestmentReal EstateAug 19, 2024
The acquired land has the potential to support the development of a 400,000 sq ft Grade A office building within the next three years. The acquisition was made through a competitive bidding process conducted by the Tamil Nadu Industrial Development Corporation (TIDCO).
This investment represents the first from the Axis Commercial Real Estate Fund, a Category II AIF that concluded its fundraising in June 2024 with a corpus of approximately INR 550 crore. The fund's distinctive strategy involves partnering with Tishman Speyer to participate in the development phase of commercial real estate projects.
The fund's focus is on investing primarily in early-stage or green-field commercial real estate projects across eight key markets, with the aim of creating top-tier office spaces to attract leading tenants.
Chetan Shah, Head of Real Estate at Axis AMC, stated that the Chennai investment aligns with the fund's strategy, where a clear-titled land parcel with single-window clearance for approvals in a city-centric location has been acquired through a transparent process.
Parvesh Sharma, Managing Director and India Country Head for Tishman Speyer, added that Chennai has emerged as an attractive location for multinational companies, including the fund's customers within the BFSI segments.
To date, Axis AMC has managed to raise over INR 6000 crore across its PMS and AIF businesses, spanning capabilities including real estate, private equity, structured credit, quantitative, and listed equities. Tishman Speyer, on the other hand, has acquired, developed, and operated 557 properties, totaling 226 million sq ft, with a combined value of over USD 128 billion.
The acquisition of the land parcel in Chennai's Fintech City marks a significant milestone for the Axis Commercial Real Estate Fund, showcasing its ability to capitalize on strategic investment opportunities in emerging commercial hubs. With the backing of experienced players like Axis AMC and Tishman Speyer, the fund is well-positioned to deliver on its vision of developing premier office spaces and attracting leading tenants across India's key markets.
Frequently Asked Questions
What is the value of the land parcel acquired by Axis Commercial Real Estate Fund in Chennai's Fintech City?
The land parcel is valued at INR 50 crore per acre.
What is the potential development plan for the acquired land?
The acquired land has the potential to support the development of a 400,000 sq ft Grade A office building within the next three years.
What is the corpus of the Axis Commercial Real Estate Fund?
The fund concluded its fundraising in June 2024 with a corpus of approximately INR 550 crore.
What is the focus of the Axis Commercial Real Estate Fund's investment strategy?
The fund's focus is on investing primarily in early-stage or green-field commercial real estate projects across eight key markets.
Who are the key partners involved in the Axis Commercial Real Estate Fund?
The fund is a collaboration between Axis Asset Management Company Limited (Axis AMC) and real estate developer Tishman Speyer.
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