RMZ Corporation and the Canada Pension Plan Investment Board (CPP Investments) have finalised the sale of One Paramount 1 to Singapore-based Keppel for $264 million. This divestment underscores the strong investor interest in India’s Grade A office assets.
One Paramount 1, part of the larger One Paramount development, is a premier office complex situated in Porur, Chennai. The asset, which spans 12.6 acres, offers approximately 2.4 million square feet of leasable space and comprises three contemporary office towers. The facility features expansive floor plates, along with retail and amenity support, catering to a diverse array of global tenants including Dow Chemicals, Nielsen IQ, UPS, Maersk, Bechtel, Genpact, Hitachi Energy, and VMware. The sale is a strategic move by RMZ, reflecting their focus on efficient capital management and resource reallocation towards emerging high-growth opportunities within their portfolio. According to the President of RMZ Real Estate, the transaction highlights both the strong investor confidence in India’s commercial real estate market and RMZ’s commitment to delivering substantial stakeholder value. The acquisition by Keppel further demonstrates the growing demand for premium office spaces in India’s leading office markets.
In addition to this transaction, RMZ and CPP Investments will maintain stakes in approximately 12.5 million square feet of core and development commercial assets across five Indian cities. Their joint venture has been instrumental in developing key projects such as RMZ One Paramount in Chennai, and notable office assets including RMZ Nexity and RMZ Spire in Hyderabad. Hari Krishna, Managing Director and Head of Real Estate for India at CPP Investments, emphasised India’s rapid economic growth and its significance as a pivotal market in Asia. He noted that the sale of One Paramount 1 presents an opportunity to realise returns on a high-quality asset, aligning with CPP’s strategic investment objectives.
The transaction highlights a broader trend of substantial foreign capital inflows into India’s real estate sector. During the first half of 2024 alone, foreign institutional investors contributed a significant US$3.1 billion, reflecting the country’s rising economic prominence and the attractiveness of its real estate market.
