Singapore-based asset manager Keppel is set to sell its One Paramount office park in Chennai to Prime Offices Fund for approximately ₹2,750 crore. The 2.4 million sq ft Grade-A commercial asset hosts leading global tenants and highlights increased investor confidence in India’s commercial office market, particularly in emerging Tier-1 cities like Chennai.
Strategic Sale of a Premium Office Asset
Keppel, which acquired One Paramount in mid-2024 for about ₹2,100 crore from RMZ Corporation and Canada Pension Plan Investment Board (CPPIB), is divesting the property to Prime Offices Fund, managed by Nuvama Asset Management and Cushman & Wakefield. The transaction values the tech park at ₹2,750 crore, reflecting strong rental yields estimated between 7% and 7.5%, significantly higher than typical market levels. This sale is a strategic move by Keppel to recycle capital and optimise its real estate portfolio in India.
One Paramount’s Market Position and Tenant Profile
Located in Chennai’s Porur area within a 12.6-acre campus, One Paramount consists of three modern Grade-A office towers offering 2.4 million sq ft of leasable space. It hosts global tenants from diverse industries, including technology, logistics, and consulting, such as Genpact, Hitachi Energy, Maersk, NielsenIQ, UPS, and VMware. The property benefits from excellent connectivity to Chennai’s IT hubs and key infrastructure, making it one of the city’s most sought-after commercial office parks.
Chennai’s Growing Commercial Real Estate Appeal
The sale illustrates the rising momentum in Chennai’s office market, supported by increased demand for high-quality tech office spaces and sustained leasing activity. Institutional investors show a strong appetite for stabilised, income-generating office assets in emerging Tier-1 cities like Chennai, which has steadily expanded its relevance as an IT and commercial hub.
The Flexinsights Take
Keppel’s divestment of One Paramount signals two critical trends in India’s commercial real estate market in 2025. First, investor interest is diversifying beyond Mumbai and Bangalore to emerging Tier-1 cities such as Chennai, propelled by the region’s robust IT ecosystem and growing office demand. Second, fund managers are actively recycling capital by selling stabilised office parks, enabling reinvestment into new development or acquisition opportunities. This transaction underscores the sustained confidence in Indian office markets, particularly in technology-driven business districts. It also marks Chennai’s growing stature as a preferred destination for global real estate capital and long-term infrastructure investment, bolstering the city’s commercial real estate outlook.
