Edelweiss Alternatives’ Rental Yield Plus Fund Assets Surge Over Rs 2500cr With MMTP Projects Acquisition

Edelweiss Alternatives’ Rental Yield Plus (RYP) Fund, a leading player in India’s commercial real estate investment landscape, has announced the successful acquisition of MMTP Projects Private Limited (MMTP PPL) in Bengaluru for an impressive sum exceeding Rs. 1,500 crores. This strategic move has bolstered RYP Fund’s portfolio, propelling its total assets to over Rs. 2500 crores, marking a significant milestone in its growth trajectory.

MMTP PPL, previously owned by the MFAR group, is the proud owner and operator of 1.1 million square feet (msf) within Bengaluru’s prestigious Manyata Tech Park. This acquisition adds a substantial 1.1 msf of Gross Leasable Area (GLA) to RYP Fund’s existing portfolio, which now stands at an impressive 1.8 msf across prime markets such as Bengaluru and Gurugram.

The acquisition of MMTP PPL aligns seamlessly with RYP Fund’s overarching strategy of aggregating high-quality Grade A/A+ operating office assets across key office micro-markets. By focusing on such assets, RYP Fund aims to provide its investors with predictable returns through annual yields, coupled with capital gains arising from property value appreciation and value enhancement.

Commenting on the transaction, Subahoo Chordia, Head of Real Assets Strategy at Edelweiss Alternatives, expressed his optimism about the growing interest from global institutional investors, domestic institutional investors, UHNIs, and family offices in India’s commercial office assets. He highlighted the unique aggregation strategy employed by RYP Fund, which consolidates Grade A/A+ office buildings into a valuable portfolio to deliver superior risk-adjusted returns.

Gautam Hora, Managing Director of Rental Yield Plus Fund at Edelweiss Alternatives, emphasized the fund’s excitement about the robust growth of India’s office sector. He expressed confidence in the fund’s ability to capitalize on similar attractive investment opportunities in operational and stabilized office parks and buildings. Hora also noted that the MMTP PPL acquisition represents a significant milestone for RYP Fund, given the asset’s impressive track record of marquee tenants, high occupancy rates, and strong rent growth.

The acquisition of MMTP PPL marks a new chapter in RYP Fund’s journey, solidifying its position as a key player in India’s commercial real estate sector. With a strong foundation and a clear growth strategy, RYP Fund is well-positioned to capitalize on the immense potential of India’s commercial office market, offering investors the opportunity to participate in the country’s economic growth story.