Nuvama, Cushman and Wakefield set up JV, look to raise $360 mn fund

Global commercial real estate consultant Cushman and Wakefield has tied up with the asset management arm of Nuvama Wealth to set up a joint venture that will raise a $360 million fund.

The joint venture, Nuvama and Cushman & Wakefield Management Pvt. Ltd, will initially focus on investment opportunities for domestic investors in the commercial real estate market.

“The collaboration seeks to create a unique strategic platform, combining Nuvama’s exceptional fund management skills with Cushman and Wakefield’s worldwide expertise in commercial real estate,” the companies said in a statement.

“With an expected demand of about 40 million sq. ft annually until 2027, India will likely represent about 50% of Asia-Pacific’s total office demand. Thanks to India’s status as a hub for global companies, its economic growth, and talent pool, the sector offers great potential for investors,” Matthew Bouw, chief executive for Asia-Pacific, Cushman and Wakefield, said.

The joint venture’s $360 million Prime Offices Fund will invest in prime commercial offices across India’s high-growth markets, the companies said.

The fund will invest in “offices of the future” across Bengaluru, National Capital Region, Pune, Mumbai, Chennai, and Hyderabad, which together account for two-thirds of leasing activity, the firms said.

“Commercial real estate in India has attracted significant global capital. Domestic investor interest is rising, and through this joint venture, we aim to provide high-quality alternative investment solutions, leveraging global best practices and professional fund management to our investors,” Ashish Kehair, managing director and chief executive at Nuvama Group, said.

The Prime Offices Fund will focus on investing in new constructions, finished properties, and assets that are already leased out.

“The Indian office sector is rapidly growing, with global investors leading the way. Domestic investors, however, have had limited exposure to this sector. Our partnership will bring together the strengths of our companies, offering investors in India access to significant opportunities in this sector,” Anshu Kapoor, president and head at Nuvama Asset Management, said.

The office sector in India is likely to thrive, driven by a large workforce, the rise in global capability centres, and a shift towards high-quality office spaces focused on wellness and sustainability,” Anshul Jain, managing director for India and Southeast Asia at Cushman and Wakefield, said.

“The PRIME Offices fund will enable us to capitalize on India’s office sector potential, providing investors with access to a range of profitable real estate opportunities. Our extensive industry experience and skilled team will ensure investors have the guidance and confidence to make successful investments,” Jain added.