Singapore-based asset management giant Keppel has made a strategic foray into the Indian real estate landscape by acquiring the One Paramount 1 tech park in Chennai for an estimated INR 2,100 crore. This notable transaction, facilitated by insiders familiar with the details, involves a prime office asset that is co-owned by the prominent realty developer RMZ Corporation and the Canadian pension fund CPP Investments. Situated in Chennai’s rapidly developing Porur area, the tech park spans an impressive 12.6 acres and encompasses a gross leasable area of 2.4 million square feet, comprising three Grade A office towers.
The acquisition, executed at a cap rate of approximately 8.5%, signifies Keppel’s confidence in harnessing potential returns in India’s burgeoning commercial real estate sector. Notably, institutional investment in Indian real estate surged to USD 4.8 billion in the first half of 2024, a testament to the resilience and growing investor confidence in the sector’s recovery trajectory. This figure already represents 81% of the total investment made in the previous year, showcasing a strong rebound amidst ongoing global economic challenges.
“This acquisition reflects one of the highest cap rates recorded recently, underlining the renewed confidence in Chennai’s office market,” remarked an industry insider. The tech park’s robust tenant portfolio includes prominent names such as Genpact, Hitachi Energy, Maersk, NielsenIQ, UPS, VMware, and Wabco, indicating a stable income stream and diversification. RMZ Corporation’s strategic exit from the joint venture aligns with its ambitious goal of developing assets valued at USD 25 billion over the next five years, with a significant focus on the commercial sector, thereby enhancing its operational efficiency and market position.
