Edelweiss Alternatives on Thursday said a fund managed by it has acquired Bengaluru's MMTP Projects for Rs 1,500 crore.

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The company owns an asset of 1.1 million square feet of gross leasable area in MFAR Manyata Tech Park, Bengaluru, and the acquisition has been done by Rental Yield Plus Fund, as per a statement.

The park houses office spaces for companies from various sectors like manufacturing, BFSI, lifestyle, consumer goods, auto, technology, flex space, and consulting.

The assets for the fund have surged to over Rs 2,500 crore with the recently completed acquisition, it said, adding that the overall gross leasable area (GLA) has crossed 1.8 msf in Bengaluru and Gurugram.

"We are seeing strong appetite from global institutional investors, domestic institutional investors, UHNIs and family offices for investments in Commercial Office Assets in India," Edelweiss Alternatives' head of real assets strategy Subahoo Chordia said. Chordia added that he expects the Grade A/A+ office stock in India to cross 1 billion square feet over the next few years.

The MMTP PPL acquisition is a significant milestone for our RYP fund, as the asset has a proven track record of marquee tenants, high occupancy, and strong rent growth, the fund's MD Gautam Hora said.