RMC Corp, CPP Investments sell office towers in Chennai to Keppel for $264 mn
In a statement, RMZ and CPP Investments said they have "completed the sale of One Paramount 1 to Keppel Ltd for USD 264 million."
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CHENNAI: Realty giant RMZ Corporation along with the Canada Pension Plan Investment Board (CPP Investments) has successfully divested their Chennai-based office complex, One Paramount 1, to Singapore's Keppel Ltd, for an impressive $264 million.
As per RMZ and CPP Investments, the sale was completed for One Paramount 1, a Grade A prime office asset located in Chennai, developed through their real estate joint venture.
The One Paramount 1 project in Porur spans over 12.6 acres, offering 2.4 million square feet of leasable office space. It houses three office towers with a diverse array of high-profile tenants including DOW Chemicals, Nielsen IQ, UPS, Maersk, and more.
Arshdeep Sethi, president, RMZ Real Estate, stated that the divestment aligns with the company’s strategic capital management goals, enabling them to focus on high-growth opportunities while bolstering investor confidence in India’s commercial real estate sector.
Keppel’s acquisition underscores significant investor interest in Grade A office properties within India’s key markets, Sethi added.
Despite this sale, the JV between RMZ and CPP Investments retains stakes in around 12.5 million square feet of core and under-development commercial properties across five cities in India.
The partnership has previously led to the development of prime office assets such as RMZ Nexity and RMZ Spire in Hyderabad, beside the One Paramount in Chennai.
Hari Krishna, MD-head of real estate India, CPP Investments, emphasised India’s rapid economic growth and pivotal role in their Asia market strategy, noting that the sale of One Paramount 1 allows them to monetise the asset for the CPP Fund.