PRIME Offices Fund Acquires Chennai Office Campus from Keppel in ₹2,550 Crore Deal

PRIME Offices Fund, managed by Nuvama Asset Management and Cushman & Wakefield, has reportedly completed the acquisition of a large office campus in Chennai's Porur micro-market from Singapore-based real estate firm Keppel. The transaction, valued at approximately ₹2,550 crore, represents one of the most significant commercial real estate deals executed by a domestic investment fund in India.

Asset Profile and Transaction Details

Sources familiar with the development indicated that the acquired office campus spans roughly 2.4 million square feet and has been designed to cater to technology companies and global capability centers. The property is reportedly LEED Platinum-certified, reflecting its institutional-grade quality and sustainability credentials. The transaction marks a complete buyout of the asset from Keppel's real estate division, positioning PRIME as the new owner of this large-scale commercial asset.

Industry observers noted that this is the second major acquisition for PRIME Offices Fund, following an earlier deal in Delhi where the fund purchased a Grade A office property from a consortium led by Kotak Alternate Asset Managers. The Chennai deal is understood to be PRIME's largest acquisition to date.

Strategic Market Positioning

The Porur micro-market in Chennai is increasingly viewed as a promising commercial office node, according to market analysts. The area benefits from strong connectivity and has witnessed growing demand from technology firms and multinational corporations setting up their operations in Chennai. Experts suggest that the acquisition reflects confidence among institutional investors in the city's commercial office ecosystem.

The deal also signals a broader trend of domestic capital participating more actively in large-scale office transactions, a segment traditionally dominated by global institutional players. PRIME's investment thesis reportedly centers on acquiring "offices of the future" — properties that are sustainable, flexible, and tailored to meet the evolving needs of next-generation occupiers.

Implications for Domestic and Global Investors

Market commentators pointed out that this transaction contributes to the ongoing rebalancing of capital flows in India's commercial real estate sector. With domestic funds gaining scale and deploying significant capital, the competitive landscape for institutional-grade commercial properties is becoming more diversified.

For Keppel, the divestment is reportedly part of its broader strategy to recycle capital from mature Indian office assets. The Singapore-based firm has been active in India's real estate market for several years and is believed to be reallocating resources toward newer development opportunities and markets.

Future Growth Plans

Following the Chennai acquisition, PRIME Offices Fund is expected to continue expanding its portfolio across key Indian micro-markets. Industry sources indicated that cities such as Bengaluru, Hyderabad, Pune, and Mumbai remain on the fund's radar. The fund's approach focuses on acquiring high-quality, fully leased assets that offer stable cash flows and long-term appreciation potential.

This development comes amid sustained demand for premium office space in India, driven by technology companies, global capability centers, and multinational corporations expanding their presence in the country. Analysts believe that deals of this magnitude could become more frequent as domestic institutional capital deepens in the real estate investment landscape.

Disclaimer: This news article is based on information reported from various industry sources. Readers are advised to verify details independently and consult relevant stakeholders before making any real estate or investment decisions. The information provided is for general informational purposes only and should not be construed as investment advice.