An alternative investment fund managed by ICICI Prudential Asset Management Company has successfully acquired a grade-A office property in Pune as part of its initiative aimed at enhancing a portfolio of income-generating commercial real estate.
The acquisition was made through the ICICI Prudential Office Yield Optimiser Fund-Series II, which purchased approximately 388,000 sq ft at Aditya Shagun Infinity IT Park in Baner, Pune, for around Rs 520 crore, according to sources familiar with the deal. The property was developed by K Raheja Group and Shagun Developers.
The asset is currently leased to reputable tenants including Eaton Corporation, Accenture, and Jaguar Land Rover, featuring an effective annual rent escalation of about 4.7%, with a weighted average lease duration of nearly nine years, ensuring long-term rental stability.
The purchase aligns with the fund’s strategy of acquiring completed office assets that are already leased. This Rs 2,000-crore Category II alternative investment fund is focused on stabilized commercial office properties in prime business hubs, aiming to deliver investor returns of 15-16% through a balanced approach of rental income and asset appreciation.
With the increasing financialization of India’s commercial real estate market, the fund seeks out opportunities that enable investors to access office assets without necessitating substantial capital outlays.
Direct ownership of grade-A commercial properties often demands investments of Rs 10-20 crore or more; however, the AIF structure allows participation with ticket sizes beginning at around Rs 1 crore. Pooling resources enhances negotiating leverage and allows the fund to secure higher rental yields of 7.5-8%, compared to the typical 5-6% yields available to individual investors.
The Pune transaction marks the latest expansion of the fund’s portfolio, which is actively investing across technology and commercial centers. The fund has holdings in office parks, retail spaces, logistics parks, warehouses, and data centers across major cities, including Mumbai, NCR, Chennai, Pune, Bengaluru, and Hyderabad. Returns are driven mainly by consistent rental income and potential capital gains.
Earlier this year, the fund secured approximately 172,000 sq ft at Cybercity IT Park in Magarpatta, Pune, with an enterprise value of about Rs 194 crore. This asset is leased to WNS Global Services under a five-year agreement featuring an annual rent increment of around 5%.
The fund has also made investments in office properties in Mumbai and Bengaluru, including spaces at iThink Techno Campus in Kanjurmarg-Powai and a property at Centennial IT Campus in Brookefield leased to Atos SE.
