info@athworth.com

Axis Commercial Real Estate Fund

Fund Details

Target Size Rs 1000 Cr + Rs 500 Cr
Target Investment Level Return
21% – 25% (IRR Gross, Pre Tax)
Target Investment Amount (per deal)
150 – 300 Cr
Commitment Period
24 months from the date of final closing
Term
7 years from the date of final closing
Investment Manager
Axis Asset Management Company Limited
Sponsor
10% post-tax IRR compounded
Set-up fees (one time)
Up to 2% on the commitment amount

A Unique Partnership with Tishman Speyer

Axis AMC

  • India’s leading asset management company
  • Each fund is supported by a corporate structure and corporate management. 
  •  Strong internal resources in the real estate industry
  • Investment management is a role.

Tishman Speyer

  • Roots is an internationally recognized property developer established over 100 years ago.
  • Strong Indian and global real estate design, development, leasing and management capabilities
    Director of Development, Leasing and Real Estate

Why Axis Commercial Real Estate Fund?

  • The fund is co-financed by India’s largest asset management company and a world-renowned real estate developer.
  • A global partnership with the ability to build premium office buildings, one of the most popular real estate classes in India. The fund focused on early stage commercial real estate development
  • Axis and TS are able to invest/co-invest up to 10% of the fund size and have one of the best regional and global track records in pre- and post-investment and asset management.

Benefits of working with Tishman Speyer

The platform aims to develop future-oriented and environmentally friendly office buildings, taking into account ESG, which has become the norm for larger populations.

  • As a leader in sustainability, New York designed the first high-rise to achieve LEED Gold certification. 
  • History – 74 million square feet (84% of product portfolio) are sustainably certified, including standards outlined in the LEED, WELL or ASHRAE certification programs
  • All new homes must be at least LEED Silver certified, with the ultimate goal being Gold or higher.

Investment Process

Step1: Sourcing

Market scanning to tap the opportunity as per investment criteria

Step2: Investment Approval

  • Preliminary transaction underwriting
  • Preliminary due diligence
  • Investment Committee Initial approval

Step3: Due Diligence & Documentation

  • Detailed transaction underwriting
  • Detailed due diligence 
  • Investment committee final approval

Step4: Asset Management

  • Collaborative approach with development manager
  • Development & Project Management
  • Financial Management Audit & Control
  • Mechanism Strategic & Tactical Meetings

Step5: Exit

  • Access to Axis Group’s institutional leverage
  • One or more combinations of the below options to achieve either a full or a partial exit
  • Sale of the entire/partial portfolio to global funds/institutional investors/domestic investors/family offices.
  • Offer of the entire/partial portfolio or project to a REIT

Fund Managers

Sushant Pote

Fund Manager

  • More than 15 years of expertise
  • Deal sourcing, project review, and asset management are among the areas of competence.
  • Actual investment experience in markets like Tirupur, Bangalore, Noida, Ghaziabad, and Pune.
  • Graduated from Govt. College of Engineering in Pune and received an MBA from IIMLucknow

Madhurima Basu

Fund Manager

  • 16+ years’ worth of experience
  • Real estate consulting, appraisals, rating, and post-loan disbursement monitoring are areas of specialization.
  • She has helped funds show that their investments are practical from a business standpoint.
  • A bachelor’s (Hons.) in Architecture from Mumbai University, which has a university ranking of three, and a master’s in Urban Planning from the School of Planning and Architecture (SPA), New Delhi. She won a gold medal at SPA.

Amit Upadhyay

Fund Manager

  • more than 13 years of expertise
  • Transaction sourcing, project appraisal, structuring, negotiation, deal completion, asset management, and exits are among the areas of competence.
  • Practical knowledge of investing in the top 8 Indian cities.
  • Chartered Accountant, an EMBA from SDA Bocconi, a postgraduate securities law diploma from Government Law College, and a bachelor’s degree in commerce from Mumbai University.

Balaji Rao

Managing Partner

  • As a developer, banker and fund manager, he has 30 years of experience in the real estate industry and has handled all tasks throughout the project life cycle.
  • CPA degree, MBA graduate of IIM Calcutta and Associate Fellow of RICS. He started his real estate career in the Rahej Group, where he was responsible for sales and marketing of all the group’s national projects.
  • He then started the mortgage business at Standard Chartered before moving to ANZ Grindlays Bank to run the property business. He was one of the pioneers of the private equity industry when he founded the TCG New Century Real Estate Platform. He later served on the investment committee of the Sun-Apollo Fund and managed the Starwood Equity Fund in India. 
  • Sits on the boards of SIA L&T Realty. and L&T Seawoods Ltd. Both have independent board members. During his career, he has overseen the development of more than 10 million square feet of residential, commercial and hospitality space.
  • He is now responsible for the creation and expansion of Axis Mutual Fund’s RE Fund platform.

Fund Structure

Product Type

  • Primarily equity
  • Risk-adjusted return (right price, right product, right partner, right place)
  • Back ended returns

Asset Class

    • Commercial (Core, Core+, Core++)
    • Focusing predominantly on early (land) stage projects
    • Complete control of the development process 
    • The objective is to build best-in-the-class assets with the globally renowned development partner

Geography

      • MMR Region
      • NCR region
      • Bengaluru
      • Hyderabad
      • Pune
      • Chennai
      • Kolkata

Assets / Leverage

  • The fund will own the SPV together with the development partner, who in turn will own the land and buildings/assets.
  • The construction funds and the LRD fund plan to use them within their means

Class of Unit

  1. Capital commitment ≥ INR 1 Cr and < INR 5 Cr
  2. Capital commitment ≥ INR 5 Cr and < INR 10 Cr
  3. Capital commitment ≥ INR 10 Cr
  1.  

Management Fees

A2: 2.00% per annum on the amount drawn down

B2: 1.75% per annum on the amount drawn down

C2: 1.50% per annum on the amount drawn down

Upfront Contribution

Class A – 20% of its Capital Commitment

Class B – 10% of its Capital Commitment

Class C – 10% of its Capital Commitment

 
  •  

About Tishman Speyer

Experience in development management

A talented in-house team of 150 engineers, architects and builders from around the world work together as an integrated real estate company to deliver projects on time and on budget while adding value to each project. Since 2010, Tishman Speyer has completed more than 55.3 million square feet of construction and remodeling worldwide, including major tower structures such as AQWA in Rio de Janeiro and two Alliance Centers in Atlanta.

Experience in property management

Tishman Speyer is a leading manager and operator of high-quality real estate that treats each building as an independent entity. This strategy allows you to focus on creating value by reducing asset operating costs and increasing operating income while meeting agreed budgets and deadlines. In 29 cities worldwide, more than 85.8 million square feet of Class A commercial, residential and mixed-use buildings are managed by the company’s in-house staff of 360 property management experts worldwide. They are responsible for the construction, safety, fire safety and maintenance of all Tishman Speyer structures.

Invested in Technology

Tishman Speyer has invested in technology-based business opportunities with the potential to transform the real estate industry. Tishman Speyer is interested in investing in early-stage funding for innovative startups because we are excited about the idea and the opportunity to use the technology in our portfolio.

Book For a Call

book a call with our team

our team of experts  at athworth will guide you towards better invest opportunities available in the market.

By submitting this form, you give athworth advisors private limited permission to call or email you.