RMZ Corp and Canada Pension Plan Investment Board have put on the block one of their assets, ‘One Paramount’ tech park in Chennai, and preliminary talks are underway for a possible sale, sources with knowledge of developments said.
The tech park is spread over a 14-acre land area with a built up area of around 2.4 million sq ft. There are three office towers and according to the official website has created a value of $412 million.
A source, not connected with the transaction, said that the asset was ready and had almost reached stabilisation, prompting the two partners to monetise their investment.
Joint venture
The project comes under a joint venture platform formed in 2021 between RMZ and CPP Investments to develop commercial projects in Chennai and Hyderabad. RMZ One Paramount in Chennai along with RMZ Nexity and RMZ Spire in Hyderabad were the three developments that were under the project. CPPIB had committed to invest around $210 million for the development of 10.4 msf of high quality office assets under the venture. The completed value of the assets was expected at over $1.5 billion.
At the time of formation of the JV a significant portion of the area was already under construction and development including One Paramount.
CPP Investments declined to comment on the deal.
Thirumal Govindraj, Senior Managing Director, RMZ Corp told businessline, “I think there are some discussions on, but I don’t think there is any immediate sale we are planning. Everyone does price discovery whenever it is required. We will let you know if there is going to be a sale ... as far as I know there is nothing on the cards as yet.”
The first tower at One Paramount was completed in 2009, and Govindraj said that the entire project was just completed at the beginning of this year.
This is not the first time RMZ has monetised its assets. In the midst of the Covid pandemic it sold 12.5 msf of real estate portfolio to a fund managed by Brookfield Asset Management for $2 billion, to clear its debts. RMZ Corp holds assets worth $18 billion across its portfolio and recently it said it plans to create asset assets worth $25 billion over the next five years.
According to market sources, One Paramount is one of the most advanced office complexes in the country, with all modern amenities including retail and mixed-use spaces where employees can work, shop and entertain themselves as well as have dining options. The asset was designed for global IT and ITes corporations and one of the centre pieces of the project is the Green Plaza, a central landscape area.