Bagmane Acquires Cognizant’s Chennai Headquarters for ₹612 Crore, Plans Major Office Park Redevelopment
Bagmane Constructions has acquired Cognizant Technology Solutions India’s headquarters in Chennai for ₹612 crore. The transaction was facilitated by JLL, a leading real estate consultancy. The property, situated in Thoraipakkam on Old Mahabalipuram Road (OMR), is located in one of Chennai's key IT corridors.
The property spans 5.9 lakh square feet or approximately 13.6 acres, as per the encumbrance certificate reviewed by HT.com. JLL's Senior Managing Director, Siva Krishnan, confirmed that the site will be redeveloped into an office park with a potential development capacity of around 3 million square feet. The redevelopment plan positions this as one of the largest deals in Zone 2 of the OMR region.
Old Mahabalipuram Road, also known as Rajiv Gandhi Salai, is divided into two zones. Zone 1 extends from Madhya Kailash Temple to Sholinganallur, while Zone 2 covers the stretch from Sholinganallur to Kelambakkam. The first zone remains a prime hub in Chennai’s IT corridor with a vacancy rate of approximately 4-5%. However, due to limited land availability, commercial interest has been growing in Zone 2, where the acquired property is situated.
The acquisition marks Bagmane Constructions’ foray into Chennai’s commercial real estate sector. The increasing development focus on Zone 2 is influenced by metro connectivity and expanding business opportunities in the region. This transaction reflects the growing demand for office spaces in Chennai’s evolving IT and commercial landscape.
According to a report by JLL, Chennai's commercial real estate market has grown 75 times over the past 25 years. The city’s office space expanded from 0.5 - 1 million square feet in 1999 to 76.5 million square feet by the first half of 2024. Chennai currently holds 12% of India’s overall Global Capability Center (GCC) market share and has a strong presence in the banking, financial services, and insurance (BFSI) sector, claiming 15% of the national footprint. The report highlights that 60% of the technology operations of Fortune-listed BFSI companies have selected Tamil Nadu as their base.
Between 2018 and 2022, office absorption in Chennai ranged between 3.8 to 4 million square feet annually. However, in 2023, post-pandemic recovery led to a sharp rise, with office leasing surging to 11.5 million square feet. Industry experts estimate that in 2025, Chennai’s office absorption is likely to reach 8.5 to 9 million square feet, reflecting sustained demand for commercial spaces.
The transaction between Bagmane and Cognizant highlights the evolving real estate trends in Chennai. With increasing focus on Zone 2 of OMR, metro connectivity improvements, and continued demand from IT and BFSI sectors, the city is poised for further commercial expansion.
