RMZ Corp, CPP Investments sell office asset in Chennai to Keppel for $264 million

The acquisition reinforces investor appetite for Grade A office assets across top office markets of India, an RMZ executive said

Bengaluru-based RMZ Corporation and the Canada Pension Plan Investment Board on August 6 said that they have completed the sale of One Paramount 1, an office complex in Chennai, to Singapore-based Keppel Ltd for $264 million.

RMZ Corp, CPP Investments sell office asset in Chennai to Keppel for $264 million (Representational photo)(RMZ Corporation)

Located in Porur, Chennai, One Paramount 1 is spread across 12.6 acres of land with 2.4 million square feet of leasable space. It was jointly developed by RMZ and CPP Investments. The development comprises three modern office towers, complemented by support retail and amenities. The commercial space is home to a diverse tenant mix including global players like DOW Chemicals, Nielsen IQ, UPS, Maersk, Bechtel, Genpact, Hitachi Energy and VMware, among others.

Commenting on the development, Arshdeep Sethi, president, RMZ Real Estate, said, "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.”

“Keppel’s acquisition of One Paramount 1 reinforces investor appetite for Grade A office assets in the top office markets of India,” Sethi added.

RMZ and CPP Investments

RMZ and CPP Investments will continue to hold stakes in around 12.5 million square feet of core and under development commercial assets spread across five Indian cities, the company said in a statement. Besides One Paramount 1, the joint venture between the two entities also included office assets like RMZ Nexity and RMZ Spire in Hyderabad.

“India is one of the fastest growing economies in the world and an important market for us in Asia,” said Hari Krishna, Managing Director and Head of Real Estate India, CPP Investments. The sale of One Paramount 1 represents an opportunity to monetize a quality asset to deliver returns to the CPP Fund, he added.

RMZ is one of India’s largest family-owned alternative asset owners, with a core focus on real estate and infrastructure.