ICICI Prudential MF Expands Real Estate Portfolio with Rs 585 Crore Office Property Acquisition

ICICI Prudential Asset Management Company (ICICI Prudential AMC) is expanding its footprint in the commercial real estate sector with the acquisition of the Aditya Shagun Infinity IT Park in Baner, Pune, for around Rs 585 crore, according to sources. The deal, developed by K Raheja Corp and Shagun Developers, was signed in February and is the fourth such transaction by ICICI Prudential AMC’s Rs 2,000 crore-ICICI Prudential Office Yield Optimiser Fund.

The fund house aims to capitalize on rental growth in Grade-A commercial spaces with the expansion of global capability centres (GCCs). The fund executed the deal through its investee firm, Prishal Office Parks IV Pvt Ltd. The 380,000 square feet property is strategically located along the Mumbai-Bengaluru highway, a key commercial property hub in Pune.

The Aditya Shagun Infinity IT Park houses blue-chip tenants such as Jaguar Land Rover, Accenture, and Eaton. These tenants pay an average rent of Rs 85 per square foot per month. The weighted average lease period for these tenants is around nine years, with lock-ins ranging from three to five years, as per the deal documents.

Earlier, the fund had acquired three properties in Pune, Mumbai, and Bengaluru for around Rs 400 crore. One of these deals included a purchase-and-leaseback arrangement with technology firm WNS Global. Industry observers note that fund houses are increasingly turning to outright ownership of Grade-A commercial spaces in prime markets such as Mumbai, Pune, Bengaluru, Chennai, and Delhi NCR. This trend underscores the preference for long-term and stable returns provided by fully-leased office spaces.

The portfolio being built by ICICI Prudential AMC and other fund houses also paves the way for a real estate investment trust (REIT). Other active players in the commercial office space market include 360 ONE, which has made significant acquisitions, such as buying and leasing back Suzlon's Pune headquarters One Earth for Rs 440 crore and acquiring a 50 percent stake in Brookfield-owned Bluegrass Business Park in Pune for Rs 2,400 crore.

ICICI Prudential AMC’s strategic acquisitions in the real estate sector not only enhance its portfolio but also position it well for future growth and diversification. The company’s focus on high-quality, well-leased properties in prime locations aligns with the growing demand for Grade-A commercial spaces, driven by the expansion of GCCs and the increasing importance of real estate in investment portfolios.