Introduction:

Nuvama Asset Management, the alternative-focused arm of Nuvama Wealth Management Ltd, has set the stage for a groundbreaking venture. In collaboration with real estate services firm Cushman & Wakefield, Nuvama has entered into a joint venture to establish Nuvama and Cushman & Wakefield Management Private Limited (NCW). The primary objective? To raise a substantial Rs 3,000 crore commercial real estate fund, introducing a game-changing player in the Indian real estate investment landscape.

The Prime Offices Fund: Unlocking Potential Across Key Micro Markets

NCW's inaugural real estate fund, named the Prime Offices Fund, is designed to capitalize on the immense potential of Grade A+ office spaces. Targeting micro markets in Bengaluru, NCR, Pune, Mumbai, Chennai, and Hyderabad - representing over 70% of India's leasing activity - the fund will strategically invest in new builds, completed, and leased assets. Anshul Jain, Managing Director of India & Southeast Asia, expresses optimism, stating, "The Prime Offices Fund will allow us to tap into the immense potential of India's office sector and offer investors unparalleled access to diverse, high-yield real estate opportunities."

A Strategic Partnership for Enhanced Capabilities

Through this collaboration, Nuvama aims to provide investors with superior fund management insights, leveraging their expertise in the alternative investment space. Cushman & Wakefield brings its wealth of knowledge in commercial real estate to the table, ensuring a comprehensive suite of capabilities for investors. The joint venture is poised not only to enhance fund management but also to provide domestic investors with unique opportunities in India's commercial real estate - a sector traditionally dominated by global investors.

India's Office Sector: A Regional and Global Standout

Matthew Bouw, Chief Executive of Asia Pacific at Cushman & Wakefield, acknowledges India's exceptional position in the global office sector. With an average demand forecasted at around 40 million square feet per year through 2027, India's projected net absorption is expected to account for approximately 50% of total office demand in the Asia Pacific region.

Addressing Domestic Investor Interest

Ashish Kehair, Managing Director & CEO of Nuvama Group, highlights the growing interest among domestic investors in India's commercial real estate. The joint venture aims to address this interest by providing well-scaled local investment vehicles, particularly in the pre-REIT space. This move positions Nuvama and Cushman & Wakefield as key players facilitating broader access to the promising Indian real estate market.

Conclusion: Opportunities in Indian Real Estate

As Nuvama Asset Management and Cushman & Wakefield embark on this strategic alliance, they pave the way for a transformative journey in the Indian commercial real estate landscape. The Prime Offices Fund, with its focus on high-quality office spaces, aligns with the growing demand in key micro markets. This collaboration not only signifies a powerful partnership but also represents a significant step towards democratizing investment opportunities in India's vibrant real estate sector.