RMZ and CPP Sell Chennai Office Complex to Keppel Ltd for USD 264 Million

Realty firm RMZ Corporation and Canada Pension Plan Investment Board (CPP Investments) sold their Grade A office complex, One Paramount 1, in Chennai to Singapore-based Keppel Ltd for USD 264 million. The divestment reflects RMZ’s strategic capital management and strong investor confidence in India's real estate market.

Realty giant RMZ Corporation along with the Canada Pension Plan Investment Board (CPP Investments) has successfully divested their Chennai-based office complex, One Paramount 1, to Singapore's Keppel Ltd for an impressive USD 264 million.

According to RMZ and CPP Investments, the sale was completed for One Paramount 1, a Grade A prime office asset located in Chennai, developed through their real estate joint venture.

The One Paramount 1 project in Porur spans over 12.6 acres, offering 2.4 million square feet of leasable office space. It houses three office towers with a diverse array of high-profile tenants including DOW Chemicals, Nielsen IQ, UPS, Maersk, and more.

Arshdeep Sethi, President of RMZ Real Estate, stated that the divestment aligns with the company's strategic capital management goals, enabling them to focus on high-growth opportunities while bolstering investor confidence in India's commercial real estate sector.

Keppel's acquisition underscores significant investor interest in Grade A office properties within India's key markets, Sethi added.

Despite this sale, the joint venture between RMZ and CPP Investments retains stakes in around 12.5 million square feet of core and under-development commercial properties across five cities in India.

The partnership has previously led to the development of prime office assets such as RMZ Nexity and RMZ Spire in Hyderabad, beside the One Paramount in Chennai.

Hari Krishna, Managing Director and Head of Real Estate India, CPP Investments, emphasized India's rapid economic growth and pivotal role in their Asia market strategy, noting that the sale of One Paramount 1 allows them to monetize the asset for the CPP Fund.

RMZ, based in Bengaluru, stands as one of India's top family-owned asset managers, with an extensive portfolio spanning premium office spaces, industrial, logistics, hospitality, and mixed-use developments.

(With inputs from agencies.)