The fund has acquired the plot of land through an electronic bidding and auction process carried out by the Tamil Nadu Industrial Development Corporation (TIDCO). The Tamil Nadu government, through TIDCOhas envisioned Fintech City as a world-class infrastructure hub for the fintech industry in Chennai.
“The investment in Chennai is the epitome of the fund’s strategy, where the fund has transparently acquired a land parcel with clear title and a single window for approvals in a central location in the city. The fund is fully aligned and will look to benefit from TIDCO’s vision and strategy for the fintech city,” said Chetan Shah, Head – Real Estate, Axis AMC.
This is the Axis’ first investment. Commercial Real Estate Funda Category II AIF that concluded its fundraising in June with a corpus of around Rs 550 crore.
“We are excited to participate in Axis CRE Fund’s first investment and development. Chennai has emerged as an attractive location for multinational companies, including our clients within the BFSI segments,” said Parvesh Sharma, Managing Director and Country Head, India, Tishman Speyer.
Axis Commercial Real Estate Fund plans to develop the acquired land parcel into a sustainable grade A office building of around 400,000 sq ft over the next three years. Tishman Speyer is the exclusive development manager and will handle the design, development, leasing and property management. “Our vision for Fintech City is to create a vibrant ecosystem that fosters innovation and growth in the fintech sector. We are confident that the world-class development by Axis AMC and Tishman Speyer will attract leading multinational corporations, further consolidating Chennai’s position as a global fintech hub,” said Sandeep Nanduri, Managing Director, TIDCO. The fund’s strategy involves participating in the development phase of commercial real estate projects through a strategic alliance with Tishman Speyer. It will focus on investing primarily in early-stage commercial real estate projects or greenfield projects across eight key markets, with the aim of creating prime office spaces to attract anchor tenants.
The joint investment and development platform seeks to capitalise on the strong demand for office space, the substantial growth seen in global capacity centres (GCCs) and the quality-seeking phenomenon seen among major occupiers.
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