ICICI Prudential Mutual Fund Acquires Fourth Office Property for Rs 585 Crore

ICICI Prudential AMC Expands Commercial Real Estate Footprint

ICICI Prudential Asset Management Company (AMC) has strengthened its position in the commercial real estate sector with the acquisition of Aditya Shagun Infinity IT Park in Baner, Pune, for approximately Rs 585 crore. The deal was signed in February, marking the fourth transaction by ICICI Prudential Office Yield Optimiser Fund, a Rs 2,000 crore-category-II alternative investment fund.

The 380,000 square feet property, developed by K Raheja Corp and Shagun Developers, is located along the Mumbai-Bengaluru highway, a prime commercial property hub in Pune. The property's blue-chip tenants, including Jaguar Land Rover, Accenture, and Eaton, pay an average rent of Rs 85 per square foot per month, with a weighted average lease period of approximately nine years.

The acquisition is part of the fund's strategy to capitalize on rental growth in Grade-A commercial spaces, particularly in markets with expanding global capability centers (GCCs). This move highlights investor preference for long-term and stable returns provided by fully-leased office spaces.

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Portfolio Growth and REIT Pathways

ICICI Prudential AMC's portfolio expansion in commercial real estate, along with other fund houses, provides a pathway to a real estate investment trust (REIT). The fund has already executed several transactions, including the purchase of three properties in Pune, Mumbai, and Bengaluru for approximately Rs 400 crore. Additionally, the fund has entered into a purchase-and-leaseback arrangement with WNS Global.

Market Trends and Competitors

Industry observers note that 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. 360 ONE, another fund source, has been active in commercial office space purchases, having acquired Suzlon's Pune headquarters One Earth for Rs 440 crore and a 50% stake in Bluegrass Business Park for Rs 2,400 crore.

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