Key Takeaways
- • Nuvama Asset Management and Cushman & Wakefield formed a joint venture entity to launch a Rs 3,000 crore commercial real estate fund focused on major Indian cities, according to PTI.
- • The joint venture, named Nuvama and Cushman & Wakefield Management, will invest in five to seven properties across Bengaluru, Delhi-NCR, Pune, Mumbai, Chennai and Hyderabad.
- • The fund is aimed at domestic investors, pairing Nuvama's fund management expertise with Cushman & Wakefield's global commercial real estate capabilities.
- • Nuvama Asset Management, formerly Edelweiss Wealth Management, reports over 1.1 million clients, and the partners have already identified several grade-A properties that are ready or nearing completion.
- • Cushman & Wakefield executives cite Bengaluru's 71 million sq ft of net office absorption and a projected 300 new global capability centres in India over the next three years as supporting demand.
Summary
Nuvama Asset Management and global commercial real estate services firm Cushman & Wakefield formed a joint venture on Wednesday, January 10, 2024, to launch a Rs 3,000 crore commercial real estate fund, according to PTI. The new entity will be called Nuvama and Cushman & Wakefield Management. The announcement was made by Matthew Bouw, chief executive of Cushman & Wakefield Asia Pacific, Anshu Kapoor, president and head of Nuvama Asset Management, and Anshul Jain, managing director of Cushman & Wakefield India and Southeast Asia.
The joint venture is designed to give investors fund management expertise through Nuvama while drawing on Cushman & Wakefield's global commercial real estate experience. It will focus on providing investment opportunities to domestic investors in the commercial real estate market. Nuvama Asset Management, formerly Edelweiss Wealth Management, is the asset management arm of Nuvama Wealth Management and serves more than 1.1 million clients in India, per a company statement.
Kapoor said the partners have already identified several grade-A properties that are ready or nearing completion, and they hope to deploy the fund corpus across five to seven properties in the six largest office markets: Bengaluru, Delhi-NCR, Pune, Mumbai, Chennai and Hyderabad. He cited net office space additions in which Bengaluru led Indian markets with 71 million sq ft, followed by Hyderabad and Delhi-NCR at 43 million sq ft each, the Mumbai region at 32 million sq ft, Pune at 26 million sq ft and Chennai at 16 million sq ft. Shanghai led net additions across Asia Pacific.
Bouw said India remains a standout performer in the office sector both regionally and globally. Jain said the country will see the creation of 300 new global capability centres over the next three years, underpinning office demand. The announcement did not disclose the fund's investment timeline or fee structure.
The joint venture is designed to give investors fund management expertise through Nuvama while drawing on Cushman & Wakefield's global commercial real estate experience. It will focus on providing investment opportunities to domestic investors in the commercial real estate market. Nuvama Asset Management, formerly Edelweiss Wealth Management, is the asset management arm of Nuvama Wealth Management and serves more than 1.1 million clients in India, per a company statement.
Kapoor said the partners have already identified several grade-A properties that are ready or nearing completion, and they hope to deploy the fund corpus across five to seven properties in the six largest office markets: Bengaluru, Delhi-NCR, Pune, Mumbai, Chennai and Hyderabad. He cited net office space additions in which Bengaluru led Indian markets with 71 million sq ft, followed by Hyderabad and Delhi-NCR at 43 million sq ft each, the Mumbai region at 32 million sq ft, Pune at 26 million sq ft and Chennai at 16 million sq ft. Shanghai led net additions across Asia Pacific.
Bouw said India remains a standout performer in the office sector both regionally and globally. Jain said the country will see the creation of 300 new global capability centres over the next three years, underpinning office demand. The announcement did not disclose the fund's investment timeline or fee structure.
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