RMZ Corp, CPP Investments sells Chennai office space to Keppel Ltd for over Rs 2,200 cr

Strategically situated in Porur, One Paramount 1 is spread across 12.6 acres of land with 2.4 million square feet of leasable space.

Bengaluru-based realtor RMZ Corporation and Canada Pension Plan Investment Board (CPP Investments) have sold One Paramount 1 office space in Chennai to Singapore-based Keppel Ltd for over Rs 2,200 crore ($264 million), RMZ Corp said on August 6.

Sources suggest that the sales proceeds will be used to expand RMZ Corp's existing commercial portfolio in India. In November last year, the company said it would invest $7 billion in equity over the next five years to develop over 125 million square feet (mn sq ft) of space in different projects worth $25 billion across major cities including Mumbai, Bengaluru, Delhi, and Hyderabad.

One Paramount 1 is part of One Paramount, a Grade A prime office asset located in Chennai developed by the real estate joint venture between RMZ and CPP Investments. Strategically situated in Porur, One Paramount 1 is spread across 12.6 acres of land with 2.4 million square feet of leasable space.

As part of their partnership, RMZ and CPP Investments will continue to hold stakes in an additional 12.5 million square feet of core and under-development commercial assets spread across other Indian cities. The joint venture witnessed the development of RMZ One Paramount in Chennai and prime office assets like RMZ Nexity and RMZ Spire in Hyderabad.

"The divestment of One Paramount 1 reflects our commitment to efficient capital management, allowing us to reallocate resources into newer, high-growth opportunities within our portfolio. This transaction not only reflects strong investor confidence in India's commercial real estate sector but also emphasises RMZ’s commitment to unlock immense stakeholder value. Keppel’s acquisition of One Paramount 1 reinforces investor appetite for Grade A office assets in the top office markets of India," Arshdeep Sethi, President of RMZ Real Estate said.