The Axis Commercial Real Estate Fund, a collaboration between Axis Asset Management Company Limited (Axis AMC) and real estate giant Tishman Speyer, has announced its first major investment with the acquisition of a 1.5-acre land parcel in Chennai's Fintech City. The transaction marks the fund's entry into the commercial real estate market with plans to develop a 400,000 sq ft Grade A office building on the site.
The land, located in Nandambakkam, is valued at approximately Rs 50 crore per acre, according to industry sources. The acquisition was secured through a competitive bid cum e-auction process conducted by the Tamil Nadu Industrial Development Corporation (TIDCO).
This investment represents a significant milestone for the Axis Commercial Real Estate Fund, a Category II Alternative Investment Fund (AIF) that recently completed its fundraising in June 2024, amassing a corpus of around Rs 550 crore. The fund's unique strategy involves partnering with Tishman Speyer to focus on the development phase of commercial real estate projects across key markets, with an emphasis on early-stage or green-field ventures aimed at creating top-tier office spaces to attract major tenants.
The new development in Chennai is expected to be completed within the next three years, adding significant value to the city's commercial real estate landscape.
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