Axis Commercial Real Estate Fund announces First Investment at Fintech City, Chennai

Mumbai | 12 August 2024: Axis Asset Management Company Limited (Axis AMC) and Tishman Speyer announced today that Axis Commercial Real Estate Fund (the Fund) has successfully acquired one of the two plots for auction at a prime location in Fintech City, Nadambakkam, Chennai. The acquisition was made through a bid cum e-auction process conducted by the Tamil Nadu Industrial Development Corporation (TIDCO). The Tamil Nadu government, through TIDCO, has envisioned Fintech City as a world-class infrastructure hub for the financial technology industry in Chennai.

This marks the inaugural investment from the Axis Commercial Real Estate Fund, a Category II AIF that concluded its fundraising in June 2024 with a corpus of approximately Rs 550 crore. The Fund employs a distinctive strategy of participating in the development phase of commercial real estate projects through a strategic alliance with Tishman Speyer, a global developer, owner, and operator of premier real estate. The fund's focus is on investing primarily in early-stage or green-field commercial real estate projects across eight key markets, with the goal of creating top-tier office spaces to attract leading tenants.

The acquired 1.5-acre plot in Chennai will be transformed into a sustainable, around 4 lakh square foot Grade A office building within the next three years, approximately. Tishman Speyer is the exclusive development manager and will manage design, development, leasing and property management.

Chetan Shah, Head – Real Estate, Axis AMC said, “Chennai investment is the epitome of the fund strategy; wherein a clear titled land parcel supported by single window clearance for approvals at city centric location has been acquired in a transparent manner by the fund. The fund is completely aligned and will seek to benefit from TIDCO’s vision and strategy of the Fintech City”.

Parvesh Sharma, Managing Director and India Country Head for Tishman Speyer said “We are excited to take part in Axis CRE Fund’s first investment and development. Chennai has emerged as an attractive location for multinational companies, including our customers within BFSI segments. We look forward to bringing our global expertise to this project”.

Mr. Sandeep Nanduri, MD, TIDCO Said, “Our vision for Fintech City is to create a dynamic ecosystem that fosters innovation and growth in the financial technology sector. We are confident that Axis AMC and Tishman Speyer’s world-class development will attract leading multinational corporations, further solidifying Chennai's position as a global fintech hub”.

About Axis AMC: Axis AMC is one of India`s fastest growing assets managers offering a comprehensive bouquet of asset management products across mutual funds, portfolio management services and alternative investments. Over the last 7 years Axis AMC has invested in significantly broadening its alternatives capabilities. Till now, the company has managed to raise Rs. ~6000 crs across its PMS and AIF businesses across capabilities including Real estate, private equity, structured credit, quantitative and listed equities.

About Tishman Speyer:

Tishman Speyer is a leading owner, developer, operator and investment manager of first-class real estate in 36 key markets across the United States, Europe, Asia and Latin America. Our portfolio spans market rate and affordable residential communities, premier office properties and retail spaces, industrial facilities, and mixed-use campuses. We create state-of-the-art life science centers through our Breakthrough Properties joint venture, and foster innovation through our strategic prop tech investments. Since our inception in 1978, Tishman Speyer has acquired, developed, and operated 557 properties, totaling 226 million square feet, with a combined value of over $128 billion (U.S.). Our current portfolio includes such iconic assets as Rockefeller Center in New York City, The Springs in Shanghai, Taunus Turm in Frankfurt and the Mission Rock neighborhood currently being realized in San Francisco.

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