The fund, the Rs 2,000 crore-ICICI Prudential Office Yield Optimiser Fund, has invested around Rs 200 crore into the investee company. The rest of the commitment is expected to be met through co-investments or through borrowings

A fund managed by ICICI Prudential Alternatives, the alternative investment arm of ICICI Prudential Asset Management Company, has bought RMZ Edge's office development in Koregaon Park, Pune, for an enterprise value of Rs 1,150 crore, according to documents seen by Moneycontrol.

The fund, the Rs 2,000 crore-ICICI Prudential Office Yield Optimiser Fund, has invested around Rs 200 crore from the fund into the investee company.

The property was developed by Bengaluru-based developer and alternative assets firm RMZ, with Pune-based real estate firm ABIL, led by developer Avinash Bhosale.

The rest of the commitment is expected to be met through co-investments, where fund participants can invest directly in the property, or through borrowings, including lease-rent discounting (LRD), according to people aware of the matter.

This is the fifth transaction that is part of the category-II alternative investment fund, with the fund investing in properties in Pune, Bengaluru, and Mumbai. The fund has also employed sale-and-leaseback arrangements for offices owned by corporates, with such 

purchases providing a steady, long-term rentals for the buyer, and also frees up capital for major corporates.

The property has 6,22,000 square feet of space, with lease terms expected to be in the range of 5-9 years. The property commands rents of around Rs 110 per square foot per month, slightly higher than rentals in the area, according to local brokers.

The deal documents show that rentals are expected to increase 15 percent every three years. The property's tenants include the managed office provider CorporatEdge, as well as multiple global capability centres, multinational companies, and large conglomerats.

The Koregaon Park suburb in Pune, known for its upmarket housing and nightlife, has also become popular in recent years as a major office destination, due to the presence of large hotels and malls, the arrival of the Pune Metro nearby, and growth of premium housing in nearby areas such as Mundhwa. The North Main Road, on which RMZ Edge is located, also has properties hosting firms such as Google, Poonawalla Fincorp, among others.

ICICI Prudential AMC declined to comment on the matter. Moneycontrol

has reached out to RMZ for comment on the deal, and the report will be updated once a response is received.

The asset management firm, part of the ICICI group, has been one of the most active participants in seeking ownership of income-generating office properties, which has the prospect of generating stable and long-term income for its investors, as well as long-term capital appreciation for the properties.

Other funds active in the space include 360 ONE, which owns properties outright, and has also picked up stakes in properties, especially those owned by Brookfield Asset Management.

RMZ's sale also comes at a time when it has made significant capital commitments towards growing its digital infrastructure and office businesses. Earlier this month, RMZ announced a $35 billion commitment over five years to build data centres and offices, including GCCs, across major markets such as Bengaluru, Mumbai,

Pune, and National Capital Region.

RMZ is in fundraising talks with major fund sources such as Bain Capital and CPP Investments, with a public listing also being a possibility.