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

ICICI Prudential Alternatives Acquires RMZ Edge's Office Development in Pune for ₹1,150 Crore

A fund managed by ICICI Prudential Alternatives, the alternative investment arm of ICICI Prudential Asset Management Company, has purchased RMZ Edge's office development in Koregaon Park, Pune, for an enterprise value of ₹1,150 crore. The deal was made through the Rs 2,000 crore-ICICI Prudential Office Yield Optimiser Fund, which has invested around ₹200 crore from the fund into the investee company.

The property, which spans 6,22,000 square feet of space, was developed by Bengaluru-based developer and alternative assets firm RMZ, in partnership with Pune-based real estate firm ABIL, led by developer Avinash Bhosale. The property's lease terms are expected to range from 5-9 years, with rents of around ₹110 per square foot per month, slightly higher than rentals in the area, according to local brokers.

The deal documents show that rentals are expected to increase by 15 percent every three years. The property's tenants include the managed office provider CorporatEdge, as well as multiple global capability centres, multinational companies, and large conglomerates. The Koregaon Park suburb in Pune, known for its upmarket housing and nightlife, has become a popular office destination in recent years due to the presence of large hotels and malls, the arrival of the Pune Metro nearby, and growth of premium housing in nearby areas.

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The asset management firm, part of the ICICI group, has been one of the most active participants in seeking ownership of income-generating office properties, which has the prospect of generating stable and long-term income for its investors, as well as long-term capital appreciation for the properties. RMZ's sale also comes at a time when it has made significant capital commitments towards growing 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 GCCs, across major markets such as Bengaluru, Mumbai, Pune, and National Capital Region. RMZ is in fundraising talks with major fund sources such as Bain Capital and CPP Investments, with a public listing also being a possibility.