A domestic real estate fund has acquired a 2.4 million square foot office campus in Chennai from Singapore’s Keppel group for ₹2,550 crores, marking the largest transaction ever completed by an Indian fund in a commercial real estate sector traditionally dominated by international capital.
Prime Offices Fund (PRIME), managed by Nuvama and Cushman & Wakefield Management Private Limited (NCW), announced the acquisition of the Leadership in Energy and Environmental Design (LEED) Platinum-certified campus located in Porur, Chennai. The transaction represents a complete buyout from Keppel’s real estate division and establishes a new benchmark for domestic institutional investment in India’s rapidly expanding office market.
Chennai is witnessing a surge in office space absorption, led by increased demand from Global Capability Centres (GCCs), Banking, Financial Services and Insurance (BFSI) companies, with the city recording the second-largest absorption among metros after Bengaluru in the first half of 2025. The Porur campus serves a diversified tenant base comprising both global capability centers and domestic technology companies, positioning it strategically within Chennai’s most attractive office corridor.
NCW represents a 50:50 joint venture between Nuvama Asset Management Limited and global real estate services firm Cushman & Wakefield. The Prime Offices Fund achieved its first close in January 2025 with a corpus of approximately ₹1,700 crores, making this Chennai acquisition its second major investment and demonstrating rapid deployment of capital in premium assets.
Gaurav Puri, Chief Investment Officer at NCW, described the acquisition as strong validation of their investment strategy. “Chennai continues to attract deep occupier interest, especially from GCCs, and Porur stands out as a micro-market with long-term fundamentals,” he stated, emphasizing the fund’s focus on sustainability, agility, and institutional-grade quality.
The transaction occurs against a backdrop of exceptional growth in India’s commercial real estate sector. The Indian Commercial Real Estate Market is expected to reach $49.30 billion in 2025 and grow at a compound annual growth rate of 21.10% to reach $128.40 billion by 2030, reflecting unprecedented investor confidence and occupier demand.
The first quarter of 2025 maintained strong momentum in the office market with large deal closures at a sustained pace amid robust fresh leasing activity, according to market analysis from Cushman & Wakefield. This momentum has particularly benefited Chennai, where institutional-grade developments with campus-style amenities command premium valuations.
The acquired asset offers institutional-grade infrastructure with excellent connectivity to key residential and commercial hubs, addressing the evolving requirements of global occupiers seeking sustainable, performance-driven office environments. The LEED Platinum certification aligns with increasing corporate emphasis on Environmental, Social, and Governance (ESG) compliance in real estate decisions.
Sustainability demand for green-certified office spaces is expected to rise by 20% in 2025 as tenants recognize the long-term benefits of energy-efficient, eco-friendly buildings, making the Chennai campus’s environmental credentials particularly valuable for long-term value creation.
The transaction reinforces Chennai’s emergence as a preferred destination for institutional real estate investment, benefiting from its established technology ecosystem and competitive operational costs compared to traditional markets like Bengaluru and the National Capital Region (NCR). Porur specifically has evolved into a micro-market with strong infrastructure development and occupier interest from multinational corporations.
For Keppel, the divestment represents part of broader portfolio optimization strategies as the Singapore-based conglomerate focuses on core business segments. The transaction multiple achieved reflects premium valuations for well-located, sustainably developed office assets in India’s tier-one markets.
PRIME’s investment philosophy centers on acquiring future-ready, sustainable, performance-led assets in strategic micro-markets that cater to evolving global occupier needs. The fund targets prime commercial office assets across key high-growth micro-markets throughout India, with particular emphasis on ESG-compliant developments serving blue-chip tenants.
The landmark deal demonstrates growing sophistication among domestic institutional investors and their ability to compete effectively against international capital pools for marquee assets. This shift suggests increasing maturity in India’s commercial real estate investment landscape and growing comfort among domestic investors with large-scale commercial real estate exposure.
