Edelweiss Locks Deal with MFAR Developers & Acquires IT Park in Bengaluru

Edelweiss Alternatives entered into a landmark deal with MFAR Developers and acquires a 1.21-million-sq-ft IT park in Bengaluru, which is the year's largest office tower buyout. With this newly signed land deal their fund rental fund was raised Rs. 5,000 crore. The company is aiming to increase the asset value through strategic upgrades and operational efficiencies.

With this fresh acquisition they built a substantial portfolio in various major cities in India, targeting high rental income and capital appreciation amidst a robust commercial real estate market. The office tower is of 12 storey, which is located in north Bengaluru’s Hebbal area along Bellary Road and Outer Ring Road.

With leases averaging six years and a near 100% occupancy rate, the property hosts multinational and domestic firms across various sectors. Edelweiss Alternatives' investment through its rental yield fund is the tactical move to invest in Bengaluru’s most thriving IT and commercial hub which promises significant rental yields and asset appreciation.

The company is aiming to leverage technology, obtain certifications, and plan capital expenditures to boost the property's financial and operational performance. A proposed capex and upgradation plan is aiming to reposition the asset, attract premium tenants, and secure higher rentals. This is not only helping in enhancing the property's value but it also help towards goal to offer investors lucrative pre-REITs investment opportunities focused on rental income and capital growth.

According to the market report, India's top seven office markets have reached a post-COVID milestone of 41.97 million sq ft in 2023. Edelweiss Alternatives has grabbed a broader trend of significant investments in India's commercial real estate, driven by its potential for high returns and strategic importance in a global investment portfolio. With the progress of the Commercial Real estate market t these deals will attract more investors like Edelweiss Alternatives in future.