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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.
Speaking on the development, Chetan Shah, Head – of Real Estate, Axis AMC said, “Chennai investment is the epitome of the fund strategy; wherein a clearly titled land parcel supported by single window clearance for approvals at city-centric location has been acquired transparently by the fund. The fund is completely aligned and will seek to benefit from TIDCO’s vision and strategy of the Fintech City.”
Further commenting on land acquisition, 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.”
“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,” Sandeep Nanduri, MD, TIDCO added.