Edelweiss Alternatives Expands Portfolio with Bengaluru's MMTP Projects Acquisition

Edelweiss Alternatives announced a significant move in the real estate sector on Thursday, with its Rental Yield Plus Fund (RYP) acquiring MMTP Projects in Bengaluru for a substantial Rs 1,500 crore. This strategic acquisition brings a prime asset under its wing, consisting of 1.1 million square feet of gross leasable area located in the bustling MFAR Manyata Tech Park, Bengaluru. This move not only enhances the fund's portfolio but also marks a notable expansion in its asset base.

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The MFAR Manyata Tech Park is renowned for housing office spaces occupied by a diverse range of companies across various sectors including manufacturing, BFSI, lifestyle, consumer goods, auto, technology, flex space, and consulting. This acquisition significantly boosts the fund's assets to over Rs 2,500 crore and expands its overall gross leasable area (GLA) to more than 1.8 million square feet across Bengaluru and Gurugram.

Subahoo Chordia, Edelweiss Alternatives' head of real assets strategy, commented on the acquisition's importance. He highlighted the growing interest from global and domestic institutional investors, UHNIs, and family offices in commercial office assets in India. Chordia anticipates that the Grade A/A+ office stock in India will surpass 1 billion square feet in the coming years, indicating a robust growth trajectory for the sector.

Gautam Hora, the fund's Managing Director, expressed his enthusiasm about the MMTP PPL acquisition. He underscored the asset's strong track record with marquee tenants, high occupancy rates, and robust rent growth as key factors contributing to this significant milestone for the RYP fund.

This acquisition not only signifies Edelweiss Alternatives' commitment to expanding its footprint in the commercial real estate sector but also reflects the growing attractiveness of India's office spaces to a broad spectrum of investors. With this strategic move, Edelweiss Alternatives sets a new benchmark for investments in commercial office assets in India.