RMZ, CPPIB sell office towers in Chennai to Keppel for $264M

Realty firm RMZ Corporation and Canada Pension Plan Investment Board (CPPIB) have sold an office complex in Chennai to Singapore-based Keppel Ltd for $264 million.

In a statement, RMZ and CPP Investments said they have "completed the sale of One Paramount 1 to Keppel Ltd for $264 million."

The project 'One Paramount 1' is part of One Paramount, a Grade A prime office asset located in Chennai developed by the real estate joint venture between RMZ and CPP Investments.

Located in Porur, One Paramount 1 is spread across 12.6-acre of land with 2.4 million square feet of leasable space. The asset comprises three office towers. It features a diverse tenant mix including global industry leaders like DOW Chemicals, Nielsen IQ, UPS, Maersk, Bechtel, Genpact, Hitachi Energy and VMware among others.

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."

This transaction not only reflects strong investor confidence in India's commercial real estate sector but also emphasises RMZ’s commitment to unlock immense stakeholder value.

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

As part of their partnership, RMZ and CPP Investments will continue to hold stakes in additional around 12.5 million square feet of core and under-development commercial assets spread across five Indian cities.

The joint venture witnessed the development of RMZ One Paramount in Chennai and prime office assets like RMZ Nexity and RMZ Spire in Hyderabad.

Hari Krishna, Managing Director and Head of Real Estate India, CPP Investments said, "India is one of the fastest growing economies in the world and an important market for us in Asia. We have been able to capture the country’s growth opportunities in the real estate sector through our partnership with RMZ."

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. Headquartered in Bengaluru, RMZ specialises in real assets, encompassing premium office spaces, industrial & logistics, hospitality, luxury living, mixed-use developments and infrastructure.