Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
The Economic Times
11,367.5521.35
Stock Analysis, IPO, Mutual Funds, Bonds & More

RMZ Corp aims to double commercial portfolio over the next 5 years

RMZ Corp has acquired 30 acres in Gurugram to add to its growing office portfolio.

, ET Bureau|
Jun 17, 2019, 10.40 AM IST
0Comments
BCCL
Real-Estate---BCCL
Representative Image
BENGALURU: Bengaluru-based RMZ Corp is looking to double its commercial portfolio to 75 million square feet over the next five years, said a senior executive, who did not wished to be named.

The company, which recently entered into an agreement with DB Realty to transform the sixdecade-old Kamalistan Studio in Mumbai, has acquired 30 acres in Gurugram to add to its growing office portfolio.

“The company hasn’t raised any foreign capital to develop projects. We bought back all foreign partners in 2018,” the executive said.

In one of the largest buybacks by a private company, RMZ Corp recently purchased 45% shares held by QIA and Baring Private Equity Partners for around $1billion.

In 2013, QIA had invested ?600 crore in RMZ Corp for a 23% stake, while Baring Private Equity Partners had invested ?450 crore in 2012 for a 21% stake in the holding company, RMZ Infotech. The homegrown firm currently has over 35 million sq ft of project operational assets across major cities in the country. RMZ Corp also plans to acquire assets in key markets such as Bengaluru, Mumbai, Chennai and Hyderabad. It has already consolidated its operations. Fresh investment at the SPV level will come in the form of debt that can either be bought back or sold to third-party investors, the senior executive said.

In 2018, the builder had put off plans to float a real estate investment trust following the buyback of shares from QIA and Baring Private Equity Partners.

However, after the success of the first REIT, the firm may take that route again. “It now plans to fuel the growth by developing properties on its own, as well as through acquisition of commercial properties,” the executive added.

RMZ is a privately-owned real estate investment, development and management firm. RMZ Infotech, the operator of business parks, is owned by the billionaire brothers Raj Menda and Manoj Menda.
0Comments

Also Read

RMZ Corp eyeing assets across cities to expand portfolio

RMZ Corp to buy 100% stake in Essar Group's Equinox Business Park in BKC

Bengaluru-based realty player RMZ Corp in talks to raise $500 million

RMZ Corp acquires Essar Group's Equinox Business Park for Rs 2,400 crore

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for Live Elections News & Results, Latest News in Business, Share Market & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service