India: Nuvama Asset Management, Cushman & Wakefield set up $361m real estate fund – DealStreetAsia

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Nuvama Asset Management, the alternatives-focused asset management arm of Nuvama Wealth Management, has formed a Rs 3,000-crore ($361.4 million) real estate fund with Cushman & Wakefield, the firms said on Wednesday.

The PRIME Offices Fund, a 50:50 joint venture between the two firms, initially plans to focus on providing investment opportunities to domestic investors in the Indian commercial real estate market, a space that has traditionally been dominated by global investors.

Buy/sell, rent/lease residential &
commercials real estate properties.

It aims to invest in Grade A+ offices across micro markets in the top six cities of Bengaluru, NCR, Pune, Mumbai, Chennai, and Hyderabad which account for over 70% of the leasing activity within India. The fund will look at investments across new builds and completed and leased assets.

Nuvama Wealth Management (formerly known as Edelweiss Securities Ltd.), an integrated wealth and asset management firm, was listed on the Indian bourses at Rs 2,750 per share in September.

“India continues to be a standout player in the office sector both regionally and globally. With average demand forecasted at around 40 million square feet per year through 2027, India’s forecasted net absorption is expected to account for close to 50% of total office demand in Asia Pacific,” said Matthew Bouw, Chief Executive, AsiaPacific, Cushman & Wakefield.

“Our global real estate expertise, coupled with Nuvama’s local market knowledge and investment acumen, will create an unrivalled value proposition for investors,” Bouw added.

“Commercial real estate is a direct beneficiary of India’s growth and has attracted high-quality institutional global capital.” Ashish Kehair, Managing Director & CEO, Nuvama Group, said.

India’s real estate sector makes up 6-7% of gross domestic product, a share projected to double by 2025, according to accounting firm Grant Thornton. The country’s real estate market is expected to reach $1 trillion by 2030.

“We are seeing growing domestic investor interest, which has so far remained an experimental play for most, because of the paucity of well-scaled local vehicles in the pre-REIT space,” Kehair added.

Cushman & Wakefield is a global commercial real estate service firm for property owners and occupiers with about 400 offices across 60 countries. In 2022, the firm reported a revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services.

Nuvama Group oversees Rs 2,89,281 crore ($34.84 billion) of client assets and caters to a diverse set of clients, which include approximately 11 lakh affluent and high-net-worth individuals and close to 3,300 of India’s most prosperous families, as of Q2 FY24.

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