Axis Commercial Real Estate Fund

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Axis Commercial Real Estate Fund

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

  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

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

The Team of Fund Managers

Balaji Rao – Managing Partner

  • He has three decades of experience working as a developer, banker, and fund manager in the real estate industry and has performed all tasks throughout the project life cycle.
  • He is a Chartered Accountant with Rank, an IIM Calcutta MBA graduate, and a Fellow member of RICS.
  • He began his real estate career with the Raheja Group, where he oversaw the sales and marketing efforts for all of the group’s national projects.
  • He then started the mortgage business at Standard Chartered Bank before moving on to ANZ Grindlays Bank to lead the property vertical.
  • When he created TCG’s Real estate platform in the new century, he was one of the pioneers for the PE sector.
  • After that, he went on to serve on the Sun-Apollo Fund’s Investment Committee and lead Starwood Capital’s fund in India. His previous roles on the boards of L&T Realty Ltd. and L&T Seawoods Ltd. both included Independent Directorships.
  • Approximately the course of his career, he has directed the development of over 10 million square feet of residential, commercial, and hotel space.
  • He is now in charge of establishing and expanding the RE Fund platform at Axis Mutual Fund.
Sushant Pote – Fund Manager

pms

  • 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
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.
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.

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.

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Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.