Edelweiss Alternatives set to buy IT park in Bengaluru for over Rs 1,475 crore
Edelweiss Alternatives, the alternative asset arm of the Edelweiss Group, has finalised a deal to acquire MFAR Developers’ 1.21-million-sq-ft information technology park in Bengaluru for over Rs 1,475 crore, said multiple persons with direct knowledge of the development.
This is the largest and first transaction for a complete buyout of an office tower so far this year. Edelweiss Alternatives is buying this asset through its rental fund, which is currently in the process of raising Rs 5,000 crore.
The 12-storey office tower, which is in north Bengaluru’s Hebbal locality along Bellary Road and Outer Ring Road (ORR), is an independent asset within an ecosystem of large integrated mixed-use development.
“The weighted average expiry of existing leases in the property is around six years. The documents for the outright transaction have already been signed and the deal is expected to be registered in the next few days,” said one of the persons mentioned above.
Lease rental at property currently hovers around Rs 100 per sq ft a month. It is nearly 100% leased and occupied by multinational and domestic companies with business presence across technology, banking, financial services & insurance, automobile, consulting and ITeS. It counts companies like Bayer and IQVIA among its key tenants.
“The fund sees an opportunity to enhance financial and operational effectiveness of the asset by using technology, obtaining necessary certifications, planning capital expenditures, and refining capital structuring,” said the second
