Office-focused REITs raise over $1 billion in April-June

New Delhi: Office-focused funds and real estate investment trusts (REITs) raised more than $1 billion in the April-June quarter, driven by rising investor appetite for income-generating commercial real estate, particularly among domestic investors.

According to research by Cushman & Wakefield, office-focused funds and REITs accounted for 51% of the $2 billion raised during the quarter, while multi-sector funds attracted the remaining 49%. Total fundraising was up 1.2 times year-on-year and 3.6 times sequentially.

The report said REITs are increasingly tapping corporate debt markets through non-convertible debentures (NCDs), term loans and commercial paper (CP) to optimise their capital structures. Category II alternative investment funds (AIFs) have also raised multiple rounds of capital in recent quarters, with sovereign wealth funds participating actively. "Capital allocation is becoming increasingly differentiated across asset classes," said Somy Thomas, executive managing director-capital markets at Cushman & Wakefield. "While office continues to attract a broad spectrum of investors owing to its maturity, liquidity and stable income profile, we are also seeing growing interest in the data centre segment as investors seek to capitalise on India's expanding digital infrastructure ecosystem."


"This diversification of capital is contributing to a deeper and more resilient investment landscape," said Thomas.

Among key transactions, Nuvama and Cushman & Wakefield Management's first real estate fund, Prime Offices Fund, achieved a final close of ₹4,000 crore. "Investors are building diversified, long-term exposure to Indian real estate rather than chasing isolated trends," said Sudarshan Lodha, CEO and co-founder of Strata.