ICICI Prudential buys Pune office asset in ₹1,150-cr deal

Deal snapshot: Koregaon Park acquisition

A fund managed by ICICI Prudential Alternatives, the alternative investment arm of ICICI Prudential Asset Management Company, has acquired RMZ Edge’s office development in Koregaon Park, Pune. The transaction values the property at an enterprise value of ₹1,150 crore, according to deal documents seen by Moneycontrol. The purchase adds another institutional deal to Pune’s commercial office market, which has been drawing interest for pre-leased, stabilised assets.

The investment was made through the ₹2,000 crore ICICI Prudential Office Yield Optimiser Fund. Documents indicate the fund has invested around ₹200 crore from the fund into the investee company. ICICI Prudential AMC declined to comment on the matter.

Who developed the property and where it sits

The Koregaon Park office property was developed by Bengaluru-based RMZ, along with Pune-based real estate firm ABIL led by developer Avinash Bhosale. The asset is positioned as an income-oriented commercial office investment, aligned with the fund’s stated preference for stabilised properties.

While the transaction has been framed as part of a broader office yield strategy, the documents and market commentary cited focus largely on the property’s lease profile, escalation structure, and the ability to support predictable rental cash flows.

How the fund is funding the transaction

The fund’s ₹200 crore investment into the investee company is only part of the overall commitment tied to the ₹1,150 crore enterprise value. The remaining commitment is expected to be met through co-investments and borrowings, according to people aware of the matter. In co-investments, participants in the fund can invest directly in the property alongside the fund.

Borrowings may also be used, including lease-rent discounting (LRD). LRD is commonly used in commercial real estate financing where predictable lease cash flows are used to raise debt against contracted rentals.

Asset size, lease terms, and rent levels

The Koregaon Park property has 622,000 square feet of space. Lease terms are expected to be in the range of five to nine years, according to the information provided. Local brokers cited in the report said the property commands rents of around ₹110 per square foot per month, which is described as slightly higher than rentals in the area.

Deal documents also show a structured rental escalation: rentals are expected to increase by 15% every three years. Such step-up clauses are a key element for income-focused funds because they offer visibility on rental growth without relying on spot-market resets.

Tenant profile: managed offices and global capability centres

The tenant roster includes managed office provider CorporatEdge. It also includes multiple global capability centres (GCCs), multinational companies, and large conglomerates, based on the deal description. A diversified tenant base can help reduce concentration risk, although the article does not provide tenant-wise area splits or rental contribution.

The emphasis in the documents is on the presence of established occupiers and longish lease terms, a combination that typically supports lower vacancy risk and more predictable cash flows.

Fifth transaction for the Category II AIF

This purchase is described as the fifth transaction under the Category II alternative investment fund. The fund has invested in properties in Pune, Bengaluru, and Mumbai. It has also used sale-and-leaseback arrangements for offices owned by corporates. In a sale-and-leaseback, a corporate sells its office asset and leases it back, which can free up capital for the seller while giving the buyer a contracted rental stream.

The report notes that such purchases can provide steady, long-term rentals for the buyer and capital release for corporates, fitting the yield-focused positioning of the strategy.

Another Pune deal: Aditya Shagun Infinity IT Park for ₹520 crore

Separately, the Office Yield Optimiser Fund – Series II is also reported to have bought Aditya Shagun Infinity IT Park in Baner, Pune, for about ₹520 crore. The complex spans approximately 388,000 square feet and is leased to tenants including Eaton Corporation, Accenture, and Jaguar Land Rover.

For that asset, the effective annual rent escalation is cited at about 4.7%, and the weighted average lease tenure is described as nearly nine years, supporting longer-term rental visibility. The strategy described is consistent: acquiring completed office assets that are already leased to tenants.

Earlier Pune acquisition: Cybercity IT Park in Magarpatta

Earlier in the year, the fund acquired about 172,000 square feet at Cybercity IT Park in Magarpatta, Pune, for an enterprise value of about ₹194 crore. That asset is leased to WNS Global Services under a five-year lease with annual rent escalation of around 5%, as cited.

The broader portfolio references also include office space at iThink Techno Campus in Kanjurmarg-Powai and a property at Centennial IT campus in Brookefield leased to Atos SE.

What these deals signal for office-yield investment products

The fund is described as a ₹2,000 crore Category II AIF that targets stabilised commercial office properties across key business hubs. The stated objective in the material provided is to generate investor returns of 15%-16% through a combination of rental income and asset appreciation.

The article also highlights an investor access angle: entry points as low as ₹1 crore for the AIF route, compared with direct property ownership that typically requires ₹10-₹20 crore or more. Estimated rental yields cited are 7.5%-8% through pooled investing, compared with 5%-6% usually seen by individual investors, reflecting the argument that scale can improve negotiation power and net yields.

Key facts table

Conclusion

ICICI Prudential Alternatives’ latest Pune transaction values RMZ Edge’s Koregaon Park office development at ₹1,150 crore and follows a pattern of buying pre-leased, income-generating office assets. Alongside reported purchases in Baner (₹520 crore) and Magarpatta (₹194 crore), the deals underline a portfolio approach built around contracted rentals and defined escalation clauses. Based on the information provided, the funding mix for the Koregaon Park acquisition is expected to include co-investments and borrowings such as LRD, while the AMC has declined to comment on the specific transaction.