ICICI Prudential Alts steps up real estate play, acquires fourth office property for Rs 520 crore

The fund house bought the property from K Raheja Corp and Shagun Developers

• ICICI Prudential AMC buys Aditya Shagun Infinity IT Park for ₹585 crore
• The IT Park houses tenants like Jaguar Land Rover and Accenture
• The fund aims for stable returns from Grade-A commercial spaces

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ICICI Prudential Asset Management Company is deepening its footprint in the commercial real estate sector with the acquisition of the Aditya Shagun Infinity IT Park in Baner, Pune, for around Rs 520 crore, sources said.

The deal for the property, developed by K Raheja Corp and Shagun Developers, was signed in February, the fourth such transaction by ICICI Prudential AMC’s Rs 2,000 crore-ICICI Prudential Office Yield Optimiser Fund.

A category-II alternative investment fund, it aims to cash in on rental growth in Grade-A commercial spaces with the expansion of global capability centres (GCCs). The fund executed the deal through investee firm Prishal Office Parks IV Pvt Ltd.

Moneycontrol has reached out to ICICI Prudential AMC for comments and the story will be updated when the response comes in.

According to deal documents, reviewed by Moneycontrol, the 380,000 square feet property is located along the Mumbai-Bengaluru highway, a commercial property hub in Pune.

The property’s blue-chip tenants include auto major Jaguar Land Rover, technology and consulting giant Accenture, and industrials firm Eaton. The tenants pay 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, documents show.

Earlier, the fund bought three properties in Pune, Mumbai, and Bengaluru for around Rs 400 crore. The deal in Pune also included a purchase-and-leaseback arrangement with technology firm WNS Global.

According to industry observers, fund houses are increasingly turning to outright ownership of Grade-A commercial spaces in prime premium markets in Mumbai, Pune, Bengaluru, Chennai, and Delhi NCR. The move highlights investor preference for long-term and stable returns that fully-leased office spaces provide.

The portfolio being built by ICICI Prudential AMC and other fund houses also provides them a pathway to a real estate investment trust (REIT).

360 ONE has been another fund source active in commercial office space purchases, having earlier bought and leased back renewables firm Suzlon's Pune headquarters One Earth for Rs 440 crore. It has also picked a 50 percent stake in Brookfield-owned Bluegrass Business Park, an office-and-retail space in Pune for Rs 2,400 crore.