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Fund Snapshot
| Target Size: | Rs 1000 Cr + Rs 500 Cr |
| Sponsor: | 10% post-tax IRR compounded |
| Investment Manager: | Axis Asset Management Company Limited |
| Term: | 7 years from the date of final closing |
| Commitment Period: | 24 months from the date of final closing |
| Target Investment Amount (per deal): | 150 – 300 Cr |
| Target Investment Level Return: | 21% – 25% (IRR Gross, Pre Tax) |
| Set-up fees (one time): | Up to 2% on the commitment amount |
A Unique Partnership with Tishman Speyer
Axis AMC
- Leading Indian asset management firm
- Each fund is supported by an institutional structure and corporate governance.
- Strong internal resources for the real estate sector
- Investment management is a role.
Tishman Speyer
- Renowned international real estate developer Roots was established 100 years ago
- Strong design, development, leasing, and management skills in India and throughout the world for real estate
- Manager of development, leasing, and property
Why Axis Commercial Real Estate Fund?
- Fund sponsored by India’s top asset management firm in cooperation with a recognized real estate developer from across the world.
- World-class partnership with the capacity to build best-in-class office buildings, one of India’s most sought-after real estate asset classes.
- A fund that focuses on commercial real estate development at an early stage
- Axis and TS have the capacity to invest / co-invest up to 10% of fund size and have one of the best regional and global track records for pre and post-investment and asset management.
The Advantage of Collaborating with Tishman Speyer
The platform will aim to develop office buildings that are future-proof and ecologically efficient while taking into consideration ESG, which is becoming the norm among significant occupiers.
- Pioneer in sustainability, New York developed the first high-rise structure to get the LEED Gold certification.
- History – 74 million square feet (84 percent of the portfolio) sustainable certification including the criteria outlined in certification schemes for LEED, WELL, or ASHRAE
- All newly constructed homes must at least have LEED Silver certification, with Gold or above is the ultimate goal.
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 with the development partner will own the project SPV which in turn owns the land and building/asset
- Fund intends to use construction finance and LRD up to optimum limits
Class of Unit
- Capital commitment ≥ INR 1 Cr and < INR 5 Cr
- Capital commitment ≥ INR 5 Cr and < INR 10 Cr
- Capital commitment ≥ INR 10 Cr
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
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
About Tishman Speyer
Development Management Expertise
A skilled in-house team of 150 engineers, architects, and builders from across the world who collaborate as a single, integrated real estate company to produce projects on time and within budget while also adding value to each project. Since 2010, Tishman Speyer has completed over 55.3 million square feet of construction and redevelopment work across the world, including large tower structures like the AQWA in Rio de Janeiro and the Two Alliance Center in Atlanta.
Property Management Expertise
Tishman Speyer is a pioneer in the administration and operation of premium real estate assets, treating every building as a separate independent venture. By reducing property running costs and increasing operating revenues, this strategy assures a focus on value creation while staying within an agreed budget and scheme. Over 85.8 million square feet of Class A commercial, residential, and mixed-use buildings in 29 cities worldwide are managed by the company’s internal staff of 360 property management professionals on a global scale. They are in charge of maintaining the engineering, security, fire safety, and maintenance of all Tishman Speyer structures.
Invested in Technology
Tishman Speyer has made investments in tech-driven entrepreneurial prospects with the potential to change the real estate industry. Tishman Speyer deliberately invests in innovative start-ups’ early fundraising rounds when we are enthusiastic about the idea and the chance to use the technology across our portfolio.
