RMZ divestment marks largest deal ever in real estate

Bangalore-based real estate firm RMZ Corp wrapped up the sale of 12.8 million sq ft of 67 million sq ft (approximately 18%) of their real estate assets for $2 billion to a fund managed by Brookfield Asset Management, which marks the largest-ever deal in the Indian real estate industry.

RMZ’s hyper-growth strategy which includes growing their real asset portfolio to 87 million sq ft and $15 billion from their current $10 billion portfolios and 67 million sq ft over the next six years, gets a boost with this deal.

Manoj Menda, Corporate Chairman, RMZ Corp, said the deal between RMZ Corp and Brookfield marked their most important milestone for the year—the conversion to a “debt-free” arm.

The transacted portfolio holds assets in Pune, Chennai, and Bengaluru. RMZ Ecoworld is the largest asset at RMZ. This Bengaluru property covers 14 million sq ft on the Outer Ring Road. The development of 18 million sq ft of the area, this has become the largest commercial real estate market by absorbance in the world. This move was strategised to clear all of RMZ's debt and accelerate their growth.

The hyper-growth strategy of RMZ depends on long-term relationships with institutional investors. In 2019, RMZ established a partnership with Mitsui Fudosan, a leading global real estate developer, for $1 billion to develop assets in India together. In 2013, the Qatar Investment Authority (QIA) invested $300 million in RMZ.

RMZ’s development pipeline delivers best-in-class assets in major markets.

Image Source