Real estate developer Tishman Speyer & Axis AMC acquire 1.5-acre to develop office space

A partnership between Axis Asset Management Company Limited (Axis AMC) and real estate developer Tishman Speyer, titled as Axis Commercial Real Estate Fund, on August 12 announced that has recently taken ownership of a 1.5-acre land parcel in Chennai's Fintech City.

The land is situated in Nandambakkam, which is valued at Rs.50 crore per acre, according to the report. The land parcel acquired by the company will have a development potential of 400,000 sq ft of Grade A office building within the next three years. 

The acquisition was made through a bid cum e-auction process conducted by the Tamil Nadu Industrial Development Corporation (TIDCO). This is the first 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.

Utilizing a strategic partnership with Tishman Speyer, the fund implements an exceptional approach by actively engaging in commercial real estate projects during their developmental phase. Its primary target is to invest majorly in early-stage or green-field ventures across eight significant markets and construct world-class office facilities capable of drawing top-notch tenants.

Chetan Shah, Head of Real Estate, Axis AMC, mentioned, "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 transparently by the fund. The fund is completely aligned and will seek to benefit from TIDCO’s vision and strategy of the Fintech City."

According to Parvesh Sharma, the Managing Director and India Country Head for Tishman Speyer, Chennai has become a desirable location for multinational corporations as well as our customers in BFSI sectors.

As of now, Axis AMC has successfully gathered more than Rs 6000 crore through its PMS and AIF undertakings. Such capabilities encompass real estate, private equity, structured credit, quantitative measures as well as listed equities.