ICICI Prudential Alternatives Acquires Fourth Office Property for Rs 520 Crore

ICICI Prudential Asset Management Company Acquires Aditya Shagun Infinity IT Park for Rs 520 Crore

Key Highlights

• ICICI Prudential Asset Management Company has acquired the 380,000 square feet Aditya Shagun Infinity IT Park in Baner, Pune, for approximately Rs 520 crore.
• The deal was signed in February and is the fourth transaction by ICICI Prudential AMC's Rs 2,000 crore-ICICI Prudential Office Yield Optimiser Fund, a category-II alternative investment fund.

Transaction Details

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• The property, developed by K Raheja Corp and Shagun Developers, is located along the Mumbai-Bengaluru highway, a commercial property hub in Pune.
• The property has blue-chip tenants, including Jaguar Land Rover, Accenture, and Eaton, with an average rent of Rs 85 a square foot a month.
• The weighted average lease period for tenants is around nine years, with lock-ins ranging from three to five years.

Industry Trends

• Fund houses are increasingly turning to outright ownership of Grade-A commercial spaces in prime premium markets, including Mumbai, Pune, Bengaluru, Chennai, and Delhi NCR.
• This move highlights investor preference for long-term and stable returns that fully-leased office spaces provide, potentially paving the way for real estate investment trusts (REITs).
• 360 ONE and ICICI Prudential AMC are among the fund sources actively purchasing commercial office spaces, with notable deals including the acquisition of One Earth and a 50% stake in Bluegrass Business Park.