Keppel to acquire Chennai office complex for INR 22 billion

Keppel Ltd. (Keppel) has entered into an agreement to acquire a 100% stake in One Paramount, a freehold Grade A office complex located in Chennai, India, for an agreed property value of approximately INR 22 billion (S$352.9 million^[1]).

Completed in 2022, One Paramount is a state-of-the-art Grade A office complex comprising approximately 2.4 million square feet of gross leasable area spanning across three office towers, as well as ancillary retail and amenity spaces. Strategically located within an established office cluster along Mount Poonamallee Road and well-connected to Chennai’s city centre, the property benefits from established physical and social infrastructure, and is in proximity to various retail, hospitality, education and healthcare amenities.

Mr Louis Lim, CEO of Real Estate, Keppel, said, “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^[2]. 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.”

In India, Keppel is also developing a commercial tower in Bangalore and is partnering the Rustomjee Group in the development of an integrated township in Mumbai. In addition, it has entered into a forward purchase for a commercial tower in Pune.

Keppel plans to create a fund to tap the interest of investors in the Indian office market, where One Paramount and the commercial tower in Bangalore could be potential seed assets of the fund. 

Following the acquisition of One Paramount, Keppel will manage the asset and will enhance its sustainability features with its in-house sustainable urban renewal (SUR) expertise. The focus will be on further enhancing One Paramount’s energy and water efficiencies, as well as waste management processes. Keppel will also look to expand the use of renewable energy, as well as implement digital and smart building technologies at the property as part of its SUR initiatives.

Developed to modern sustainability standards, One Paramount holds a LEED Platinum certification from the US Green Building Council. Its green features include rainwater harvesting and water efficient fixtures, energy efficient lighting and air-conditioning, as well as rooftop solar panels. The property also comes well-equipped with a wide selection of amenities, including large green spaces, social lobbies, an open-air theatre, a gymnasium, as well as a food court.

One Paramount is substantially leased with tenants comprising leading multinational corporations and domestic companies from a diverse sector mix, including consulting, chemicals, information technology and logistics services.

The abovementioned transaction is not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel for the current financial year.

^[1] Based on an exchange rate of INR62.34 to S$1 as at 26 July 2024.

^[2] Source: JLL Research, Q4 2023

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About Keppel Ltd. 

Keppel Ltd. (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity. Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts.