Singapore’s Keppel Land has made a major play for a foothold in India’s booming IT sector by acquiring the One Paramount tech park in Chennai for Rs 2,100 crore (approximately $26 million USD). This strategic acquisition comes as China grapples to stabilize its own property market, prompting Keppel to look towards emerging economies like India for growth.
One Paramount is a prime office complex boasting a substantial 2.4 million square feet of leasable space spread across three towers. Previously co-owned by RMZ Corp and CPP Investments (Canada Pension Plan Investment Board), the deal marks a significant transaction in the Indian commercial real estate market. Notably, the cap rate of 8.6% suggests a strong potential return on investment for Keppel Land, further solidifying the attractiveness of the Indian market.
This acquisition isn’t just a win for Keppel. It underscores the growing appeal of India’s IT sector for foreign investors. Chennai, a major IT hub in its own right, is a prime location for this investment. Keppel Land’s move is likely to be watched closely by other foreign players considering venturing into the Indian real estate market, particularly those targeting the IT sector.
