Nuvama Asset Management, the alternatives-focused arm of Nuvama Wealth Management Ltd., and Cushman & Wakefield, a global commercial real estate services firm, have joined forces to raise a commercial property fund worth Rs 3,000 crore. This Category-II Alternative Investment Fund (AIF) is expected to have a tenure of six years and will enable the joint entity to invest in office assets worth approximately Rs 6,000 crore with the assistance of project-specific leveraging.



Nuvama and Cushman & Wakefield's joint venture will begin with its flagship product, the PRIME Offices Fund (PRIME). This real estate fund aims to invest in Grade-A office spaces across key micro markets in six major Indian cities, including Bengaluru, the National Capital Region, Pune, Mumbai, Chennai, and Hyderabad. These cities account for over 70% of the leasing activity in India. The fund will consider investments in new builds, completed projects, and leased assets.



The joint venture between Nuvama and Cushman & Wakefield aims to bridge the gap for domestic investors in the commercial real estate market by providing excellent investment opportunities. With a focus on Grade-A offices and the expertise of both companies, this joint venture is poised to transform India's commercial real estate investment landscape.



In December 2023, Toro Investment Managers announced it would raise Rs 1,600 crores via a Category – II AIF in GIFT City, Gujarat, a first of its kind to be instituted within the GIFT City Special Economic Zone. The fund will exclusively target investments within GIFT City, across diverse sectors such as commercial properties, residential properties, and social infrastructure initiatives. The dollar-denominated fund will have a seven seven-year tenure with a two-year extension on two occasions. The fund includes a green shoe option of Rs 800 crores.



In November 2023, Edelweiss Alternatives announced its plans to raise Rs 5,000 crores for a unique rental yield plus fund, targeting commercial properties across six metro cities in India. Funds will be raised via international and domestic investors, with the company aiming for a prudent three-year timeline. In the same month, WSB Real Estate Partners, formerly known as Walton Streets BlackSoil announced it would launch a new fund following the completion of its Rs 700 crore fund within two months. This fund would focus on structured debt investments in residential real estate projects catering to the mid-income housing segment in select tier-I cities in India. They are actively seeking partnerships to manage the fund.



In October 2023, PropShare Capital launched PropShare Real Estate Fund II (PREF II), a second scheme within their existing Category II AIF. PREF II will concentrate on fully developed Class A income-generating commercial real estate properties leased to multinational and blue-chip tenants in India’s tech hubs. The fund aims to raise Rs 500 crore in capital, with an additional Rs 300 crore available through a green shoe option. In the same month, Justo Realfintech, a company that offers sales and marketing services for residential projects announced its plans to launch a Category – II AIF, to raise Rs 665 crores. The company is looking for entities to partner with to run the fund and aims to officially launch in early 2024.



In conclusion, the collaboration between Nuvama Asset Management and Cushman & Wakefield signifies a significant stride in reshaping India's commercial real estate investment landscape. The PRIME Offices Fund, a flagship product of this joint venture, demonstrates a strategic focus on Grade-A office spaces across major Indian cities, addressing the demand for quality assets. With a fund size of Rs 3,000 crores and a six-year tenure, the partnership aims to offer lucrative opportunities for domestic investors. As this venture unfolds, it aligns with the broader trend in the market, where various firms, such as Toro Investment Managers, Edelweiss Alternatives, WSB Real Estate Partners, PropShare Capital, and Justo Realfintech, are also launching innovative funds, signaling a dynamic and evolving real estate investment landscape in India.