ICICI Prudential AMC has acquired 1.7 lakh square feet of office space in Pune’s Magarpatta Cybercity for ₹177 crore from IT services firm WNS Global. The transaction, structured as a sale-and-leaseback deal, involves leasing the property back to WNS Global at an initial rent of ₹16 crore per year. The lease begins at ₹77.50 per square foot per month and includes a 5% annual escalation over the five-year locked-in period.
The investment was made through ICICI Prudential Office Yield Optimiser Fund, a category-II alternative investment fund. The transaction is part of the fund’s strategy to build a portfolio of rent-yielding commercial assets, particularly office spaces. According to industry sources, the fund is in the process of raising ₹2,000 crore and is targeting a yield of approximately 9% from the WNS Global deal.
Sale-and-leaseback transactions are not common in the commercial real estate sector, though they have been used in industries like aviation and hospitality. In such transactions, a company sells its property and then leases it back to continue operations while unlocking capital for other business needs. With increasing interest from institutional investors, this model is gaining traction in India’s office space segment.
The emergence of publicly traded real estate investment trusts (REITs) has contributed to this trend. Large capital providers, including REITs and alternative investment funds, are acquiring office properties with long-term lease commitments. This approach offers investors steady rental income and potential appreciation while allowing companies to redeploy capital into core business activities.
Industry experts note that similar deals have been executed in recent years. In one such transaction, renewable energy firm Suzlon sold its corporate headquarters, One Earth, in Pune’s Hadapsar area to 360 ONE Alternates Asset Management for ₹440 crore. The deal allowed Suzlon to reduce debt and monetize non-core assets while continuing operations in the same location under a lease agreement.
With leasing activity strong in key commercial hubs, especially from global capability centers (GCCs) and India-focused businesses, more investors are exploring opportunities in the office real estate market. ICICI Prudential AMC’s latest acquisition reflects this growing interest in stable, income-generating assets.
