ICICI Prudential Alternatives Acquires RMZ's Pune Property for Rs 1,150 Crore

ICICI Prudential Alternatives, the alternative investment arm of ICICI Prudential Asset Management Company, has acquired RMZ Edge's office development in Koregaon Park, Pune, for an enterprise value of Rs 1,150 crore. This is the fifth transaction under the Rs 2,000 crore ICICI Prudential Office Yield Optimiser Fund, which has invested around Rs 200 crore from the fund into the investee company.

The rest of the commitment is expected to be met through co-investments or through borrowings, including lease-rent discounting (LRD), according to sources familiar with the matter. The property, developed by Bengaluru-based developer and alternative assets firm RMZ, in conjunction with Pune-based real estate firm ABIL, led by developer Avinash Bhosale, spans 6,22,000 square feet.

The property has lease terms ranging from 5 to 9 years and commands rents of around Rs 110 per square foot per month, slightly higher than the average rental in the area. According to local brokers, the rentals are expected to increase by 15 percent every three years. The property is home to tenants such as the managed office provider CorporatEdge, multiple global capability centres, multinational companies, and large conglomerates.

Koregaon Park, known for its upscale housing and vibrant nightlife, has emerged as a major office destination in recent years. The area's appeal is bolstered by the presence of large hotels and malls, the upcoming Pune Metro, and the growth of premium housing in nearby areas like Mundhwa. The North Main Road, where RMZ Edge is located, hosts firms such as Google and Poonawalla Fincorp, among others.

ICICI Prudential AMC, part of the ICICI group, has been a leading player in acquiring income-generating office properties. These investments offer stable and long-term income for its investors, as well as long-term capital appreciation for the properties. Other active players in the space include 360 ONE, which owns properties outright and has also picked up stakes in properties, particularly those owned by Brookfield Asset Management.

RMZ's sale comes at a time when the company is making significant capital commitments to expand its digital infrastructure and office businesses. Earlier this month, RMZ announced a $35 billion commitment over five years to build data centres and offices, including global capability centres (GCCs), in major markets such as Bengaluru, Mumbai, Pune, and the National Capital Region. The company is also in talks with major fund sources like Bain Capital and CPP Investments for a potential public listing.

ICICI Prudential AMC declined to comment on the matter. Moneycontrol has reached out to RMZ for comment on the deal, and the report will be updated once a response is received.