Vacant Fintech plot acquired by Axis Commercial Real Estate fund for Rs 75 crore

CHENNAI:

After Tamil nadu Industrial Development Corporation e-auctioned two vacant plots in Fintech city in Nandambakkam for development of BFSI/Fintech related GCCs, one of them was acquired by Axis Commercial Real Estate Fund (the Fund) for around Rs 75 crore.

Axis Asset Management Company Limited (Axis AMC) and Tishman Speyer made the announcement that Axis Commercial Real Estate Fund acquired the plot for a cost of Rs 50 crore per acre.

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

The acquired 1.5-acre plot in Chennai will be transformed into a sustainable, around 4 lakh square foot Grade A office building within the next three years, approximately. Tishman Speyer is the exclusive development manager and will manage design, development, leasing and property management.

The Fund employs a distinctive strategy of participating in the development phase of commercial real estate projects through a strategic alliance with Tishman Speyer, a global developer, owner, and operator of premier real estate. The fund's focus is on investing primarily in early-stage or green-field commercial real estate projects across eight key markets, with the goal of creating top-tier office spaces to attract leading tenants.

Chetan Shah, Head – Real Estate, Axis AMC said, “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 in a transparent manner by the fund. The fund is completely aligned and will seek to benefit from TIDCO’s vision and strategy of the Fintech City.”

It is learnt that two adjacent land parcels, totalling 3 acres, in the master-planned development of Fintech City's South Phase is proposed to be used for development of GCCs. TIDCO has invited BFSI and Fintech companies, GCCs and real estate developers (end usage for BFSI/Fintech companies) to participate in this e-auction, offering an unparalleled chance to be part of an integrated city with established infrastructure. The plots on offer, S15 and S16, each 1.5 acres, are part of a multiple-use zone suitable for office, residential, and hospitality developments, with no further reclassification required. The land is encumbrance-free, with a 99-year lease period, and all clearances will be processed through a single-window system.

Fintech City, spanning 111.4 acres, represents a strategic investment of ₹12,000 crores, aiming to create 150,000 jobs upon full operation.