RMZ Corp, the Bengaluru-based property developer backed by Qatar Investment Authority (QIA), is looking to file a prospectus for a Real Estate Investment Trust (REIT) by April next year.
It is known that the company is looking to list its REIT by the third quarter of 2017, while preparations are at a preliminary stage and it is in the process of appointing bankers. The company is known to prefer a private Reit structure, as allowed in the case of the infrastructure investment trust (InvIT).
As per reports, both, RMZ and QIA do not want to sell out. Raj Menda, Chairman, RMZ Corp, reportedly believes that, however, when they go out to buy an asset, they can sell their REIT units and create liquidity. And besides, in the case of a private REIT, they can raise large chunks of funds from a limited number of investors such as pension funds, unlike raising small chunks from large number of retail investors. Reports say that even if they do not get a private REIT, RMZ will go ahead with the REIT plans.
Further, the company is also planning to set up a new platform with QIA after their first platform, which bought commercial properties in Mumbai, NCR and Chennai. Under the first platform, it has invested 80 per cent of the corpus in income-producing assets and 20 per cent in under-construction projects, according to reports, which fits perfectly well with the REIT norms.
RMZ also plans to grow its office portfolio five times in the next five years through development, acquisition and aggregation of office properties. The company owns about 17 million square feet office spaces in the country and wants to take this to 20 million sq ft by 2017 and 80 million sq ft by 2021. In the first phase up to 2017, it will develop and acquire properties and after that it will also aggregate properties where it will offload stake in the holding company. In the first phase, it is planning an equal mix of development and acquisition of office properties, and the company plans to invest $500 million to develop office properties in the next 12 to 18 months. Besides Bengaluru, Chennai and Hyderabad, it plans to develop and acquire properties in Mumbai and NCR.