Keppel has agreed to acquire a 100% stake in One Paramount, a freehold Grade A office complex in Chennai, India, for INR22 billion ($352.9 million).
The complex comprises about 2.4 million sq ft of gross leasable area (GLA) spanning three office towers as well as ancillary retail and amenity spaces. Completed in 2022, the complex is located within an established office cluster along Mount Poonamallee Road. It is also well connected to Chennai’s city centre and has proximity to various retail, hospitality, education and healthcare amenities.
Following the acquisition, Keppel will manage the asset and enhance its sustainability features with a focus on enhancing the complex’s energy and water efficiencies and waste management processes.
Keppel will also look to expand the use of renewable energy, as well as implement digital and smart building technologies at the property as part of its in-house sustainable urban renewal (SUR) initiatives.
The complex is “substantially leased” with a multi-sector mix of tenants from multinational corporations and domestic companies.
“India continues to see strong commercial leasing volumes driven by solid growth fundamentals, and is a market we are actively looking to further invest in. Chennai is among India’s top five office markets and has observed rapid growth in the past two decades,” says Louis Lim, CEO of real estate, Keppel.
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“Keppel will deploy our innovative sustainable urban renewal capabilities to improve the asset’s energy efficiency and sustainability performance with the aim of enhancing its value and attractiveness to the investors of our private funds,” he adds.
In its July 31 statement, Keppel says it plans to create a fund to tap the interest of investors in the Indian office market. One Paramount and a commercial tower developed by Keppel in Bangalore could be potential seed assets of the fund.
Keppel is also partnering the Rustomjee Group for the development of an integrated township in Mumbai.
Shares in Keppel closed 11 cents higher or 1.69% up at $6.64 on July 31.
