Cushman & Wakefield and Nuvama Collaborate to Unveil ₹3,000 Crore Office Platform

Cushman & Wakefield (C&W) and Nuvama Asset Management have joined forces to establish a ₹3,000-crore platform dedicated to investing in office projects, according to an announcement. The collaboration aims to launch the Prime Offices Fund, a six-year close-ended fund, pending approval from the Securities and Exchange Board of India (SEBI), expected in approximately six months.

Anshu Kapoor, President of Nuvama Asset Management, highlighted the platform's potential to offer compelling solutions for Indian investors, emphasizing the unique combination of Nuvama's fund management expertise and C&W's consultancy prowess in the commercial real estate sector. Kapoor identified a significant opportunity, estimating it to be a $100-billion asset class that could double in size over the next decade.

The fund intends to attract high-net-worth individuals and family offices for fundraising purposes, with a focus on the top six cities in India: Bengaluru, Delhi, Pune, Mumbai, Chennai, and Hyderabad. Initial investments are earmarked for five to seven assets, ranging between ₹500-1,000 crore each, encompassing both under-construction and fully leased properties. Kapoor confirmed ongoing efforts in developing the deal pipeline, with the expense ratio capped at 30 basis points.

Expressing a long-term commitment, Kapoor stated that once the inaugural fund concludes, a subsequent and larger fund would be initiated. The Prime Office Fund aspires to challenge the prevailing dominance of foreign institutional investors such as Blackstone and Brookfield in the Indian office space.

Anshul Jain, Managing Director for India and South-East Asia, as well as Head of APAC Tenant Representation at C&W, revealed that the platform had been in development for about a year. Despite uncertainties and occupancy challenges, he noted that the Indian office market absorbed an impressive 41 million sq ft last year. With a surge in the construction of high-quality offices, projections indicate an addition of over ₹8-lakh crore worth of office space over the next decade in India.

HBL