ICICI Prudential AIF Expands Pune Portfolio with INR 520 Crore IT Park Acquisition

ICICI Prudential Asset Management's alternative investment fund has completed the purchase of a significant office property in Pune's Baner area, marking another step in its strategy to grow a portfolio of income-generating commercial real estate. The acquisition, executed through the ICICI Prudential Office Yield Optimiser Fund-Series II, involved approximately 388,000 sq ft of office space at Aditya Shagun Infinity IT Park for around INR 520 crore. The property was developed by K Raheja Group in partnership with Shagun Developers and is fully leased to companies such as Eaton Corporation, Accenture, and Jaguar Land Rover, offering stable rental income.

The asset carries an effective annual rent escalation of about 4.7% and has a weighted average lease tenure of nearly nine years, providing long-term revenue visibility. The fund focuses on acquiring completed Grade A office properties that are already operational and leased to credible tenants. With a corpus of INR 2,000 crore, it targets stable commercial office assets across major business hubs. The fund aims to deliver investor returns of 15-16% through a combination of rental income and potential appreciation of the assets.

The structure of the fund allows investors to access premium office properties with lower capital requirements. While direct ownership of Grade A commercial real estate generally demands investments of INR 10-20 crore, participation in the AIF can start at around INR 1 crore. Pooling capital enables better negotiation and higher rental yields, which typically range between 7.5-8%, compared with 5-6% achievable through individual ownership.

This Pune acquisition builds on earlier investments by the fund in the city, including about 172,000 sq ft at Cybercity IT Park in Magarpatta acquired for approximately INR 194 crore. That property is leased to WNS Global Services under a five-year lease with annual rent escalation around 5%. The fund also holds office space in other major hubs such as Mumbai, Bengaluru, Chennai, Hyderabad, and NCR, covering office parks, retail properties, warehouses, logistics parks, and data centers. Its strategy focuses on generating returns through steady rental income and capital appreciation.

The acquisition reflects the growing trend of institutional investors targeting stabilized office assets in India, especially in technology and outsourcing hubs. By acquiring fully leased properties, the fund ensures predictable cash flows while expanding its commercial real estate footprint. The move also highlights Pune's appeal as a location for corporate offices, with Grade A office parks in established locations attracting long-term tenants.