The acquisition has been made through the ICICI Prudential Office Yield Optimiser Fund-Series II, which has purchased about 388,000 sq ft in Aditya Shagun Infinity IT Park in Baner, Pune, for about Rs 520 crore, according to people aware of the transaction. The property is developed by K Raheja Group and Shagun Developers.
The property is leased to tenants including Eaton Corporation, Accenture and Jaguar Land Rover. The asset carries an effective annual rent escalation of about 4.7% and has a weighted average lease tenure of nearly nine years, providing long-term rental visibility.
The purchase is part of the fund’s strategy of acquiring completed office assets that are already leased to tenants. The Rs 2,000-crore category II alternative investment fund focuses on stabilised commercial office properties across key business hubs. It looks to generate investor returns of 15-16% through a combination of rental income and asset appreciation.
With the growing financialisation of India’s commercial real estate market, the fund is looking to tap into opportunities and provide investors access to office assets that would otherwise require larger capital commitments.
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Direct ownership of grade-A commercial property typically requires investments of Rs 10-20 crore or more, while the AIF structure allows participation with ticket sizes starting around Rs 1 crore. Pooling capital also improves negotiating power and enables the fund to secure higher rental yields of 7.5-8%, compared with the 5-6% yields typically available to individual investors.
The Pune transaction is the latest addition to the fund’s portfolio, which has been deploying capital across technology and commercial hubs. The fund has investments in office parks, retail assets, logistics parks, warehouses and data centres across major markets such as Mumbai, NCR, Chennai, Pune, Bengaluru and Hyderabad, with returns driven primarily by stable rental income and potential capital appreciation.Earlier this year, the fund acquired about 172,000 sq ft at Cybercity IT Park in Magarpatta, Pune, for an enterprise value of about Rs 194 crore. The asset is leased to WNS Global Services under a five-year lease with annual rent escalation of around 5%.
The fund has also invested in office assets in Mumbai and Bengaluru, including space at iThink Techno Campus in Kanjurmarg-Powai and a property at Centennial IT campus in Brookefield leased to Atos SE.