ICICI Pru Alternatives Acquires Prime Office Assets in Bengaluru and Pune
Mumbai: ICICI Prudential Alternatives has made a significant move in the commercial real estate market by acquiring two Grade A office assets from RMZ Group in Bengaluru and Pune for about Rs 2,600 crore. This strategic acquisition is aimed at expanding the company's exposure to income-yielding commercial real estate.
The acquisition has been executed through the ICICI Prudential Office Yield Optimiser Fund, a Rs 2,500 crore vehicle focused on completed and pre-leased office properties across key Indian markets. This fund is designed to capitalize on the robust demand for high-quality office spaces and to generate stable, long-term returns for investors.
The first asset, EcoWorld 21, is located in Bengaluru on the Outer Ring Road (ORR), which is the country’s largest office micro-market and a hub for global capability centres (GCCs). The property spans about 675,000 square feet and is leased to a diverse mix of multinational tenants, with lease tenures ranging from 5 to 9 years. Rentals at the EcoWorld campus are in the range of Rs 125 to 140 per square foot per month, which is higher than the micro-market average. This premium is supported by the property's premium amenities and sustainability features.
The second asset, RMZ Edge in Pune, comprises about 622,000 square feet and is located in Koregaon Park, a key commercial and residential hub. The property benefits from its proximity to the Pune Metro and established social infrastructure, making it an attractive location for businesses. Rentals in the micro-market are estimated at Rs 110 to 115 per square foot per month, with the corridor hosting several global occupiers.
ICICI Prudential Alternatives' acquisition of these prime office assets underscores the company's commitment to investing in high-quality, income-generating properties. The move is expected to enhance the company's portfolio and provide stable returns to its investors in the long term. With the ongoing demand for modern, well-located office spaces, these acquisitions are poised to deliver significant value and contribute to the growth of the commercial real estate sector in India.
