Keppel acquires Chennai office complex for S$352.9 million

INDIA: Keppel Ltd. (Keppel) has announced its agreement to acquire a 100% stake in One Paramount, a premier Grade A office complex in Chennai, India. The transaction is valued at approximately INR 22 billion (S$352.9 million).

Completed in 2022, One Paramount features around 2.4 million square feet of gross leasable area across three office towers, complemented by retail and amenity spaces.

The complex is strategically situated within an established office cluster along Mount Poonamallee Road, offering excellent connectivity to Chennai’s city centre and proximity to various retail, hospitality, education, and healthcare facilities.

Mr Louis Lim, CEO of Real Estate at Keppel, expressed optimism about the acquisition, stating, “India continues to see strong commercial leasing volumes driven by solid growth fundamentals, and is a market we are actively looking to further invest in. Chennai is among India’s top five office markets and has observed rapid growth in the past two decades. Keppel will deploy our innovative sustainable urban renewal capabilities to improve the asset’s energy efficiency and sustainability performance with the aim of enhancing its value and attractiveness to the investors of our private funds.”

Keppel’s portfolio in India includes a commercial tower under development in Bangalore, a partnership with the Rustomjee Group for an integrated township in Mumbai, and a forward purchase agreement for a commercial tower in Pune.

The company, which has Temasek as its largest minority shareholder, plans to establish a fund to attract investors interested in the Indian office market, with One Paramount and the Bangalore Tower as potential seed assets.

Post-acquisition, Keppel intends to manage and enhance One Paramount’s sustainability features using its in-house sustainable urban renewal expertise.

The focus will be on improving the property’s energy and water efficiencies and waste management processes. Keppel also aims to expand the use of renewable energy and implement digital and smart building technologies at the site.

One Paramount is said to have been developed to modern sustainability standards, holding a LEED Platinum certification from the US Green Building Council.

Its green features include rainwater harvesting, water-efficient fixtures, energy-efficient lighting and air-conditioning, and rooftop solar panels. The property is well-equipped with amenities such as large green spaces, social lobbies, an open-air theatre, a gymnasium, and a food court.

The complex is substantially leased to leading multinational corporations and domestic companies across diverse sectors, including consulting, chemicals, information technology, and logistics services.

The acquisition of One Paramount is not expected to have any material impact on Keppel’s net tangible assets per share or earnings per share for the current financial year.