By Sobia Khan
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Singapore-based Keppel is set to divest its office asset One Paramount office park in Porur, Chennai, to Prime Offices Fund, managed by Nuvama Asset Management and Cushman & Wakefield (NCW), for about 2,750 crore, according to people familiar with the matter. The development underscores surging investor interest in India’s burgeoning office markets.Spanning 2.4 million square feet, One Paramount is a Grade-A tech park housing global tenants such as Genpact, Maersk, UPS, VMware and Hitachi Energy. The property is part of a 12.6-acre development. “The deal not only reflects the asset’s institutional quality and high occupancy but also positions the buyer to command strong rental yields, estimated at around 7–7.5%, well above typical market standards,” said one of the persons, who did not wish to be identified.Queries emailed to XX did not elicit a response till press time.Live EventsIn mid-2024,Singapore-based global asset manager and operator Keppel had acquired One Paramount 1 tech park in Chennai for about Rs 2,100 crore. The prime office asset was jointly owned by real estate developer RMZ Corporation and Canadian pension fund CPP Investments.The Chennai acquisition comes after Prime Offices Fund acquired Prius Platinum, built over 0.3 million sq ft in Saket District Centre in Delhi, for about Rs 750 crore, and another 300,000 sq ft asset in Saket for about Rs 760 crore. “Both properties are almost fully leased and ESG (environmental, social and governance)-upgraded, delivering predictable income streams and marking the fund’s multi-city rollout,” said another person.Prime Offices Fund is a 50:50 venture between Nuvama Asset Management and Cushman & Wakefield India, targeting premium office real estate in Mumbai, Bengaluru, National Capital Region, Pune, Chennai and Hyderabad. The fund raised Rs 1,700 crore at its first close in January and plans to scale up to Rs 3,000 crore in the near term, potentially leveraging up to Rs 6,000 crore of investments with debt facilities. The strategy centres on acquiring strong rent-yielding office assets with capital appreciation potential.In 2021, RMZ and CPP Investments had formed a joint venture to develop 10.4 million sq ft of commercial office space in Chennai and Hyderabad. Upon completion, the projected value of these assets, including RMZ Paramount, RMZ Nexity and RMZ Spire in Hyderabad, was expected to exceed $1.5 billion.Chennai’s office market provides fertile ground for such deals. Office leasing surged to more than 76 million sq ft by mid-2024 from less than 1 million sq ft in the late 1990s. In 2023, gross absorption peaked at 10.5 million sq ft, while the first half of 2025 alone saw 5.5 million sq ft of leasing, a 57% year-on-year jump. Demand has expanded beyond traditional corridors like Old Mahabalipuram Road to emerging hubs such as Radial Road, Tambaram, Ambattur and Madhavaram, backed by improving infrastructure. Sectoral diversification is evident from strong demand from IT firms, global capability centres, banking, finance and insurance, and life sciences, the latter registering a 60% leasing growth in 2024, as per industry data.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onOne Paramount office parkKeppel CorporationPrime Offices Fundreal estate investment in IndiaNuvama Asset ManagementCushman & Wakefieldoffice leasing in Chennaicommercial property valuation ChennaiChennai office marketinstitutional quality office assets(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
