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RMZ Corp is one of the largest real estate developers in India with over 20 million square feet of prime real estate developments built since its inception in 2002. RMZ’s expertise in development of Commercial Office spaces has propelled us to expand our horizon and embark on developing state of the art Residential, Retail and Hospitality spaces.
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RMZ to buy Essar Biz Park in Rs. 2,400cr deal @rmz_corp @TOI India News
Bengaluru Firm Swoops Down to Clinch Mumbai's Biggest Commercial Space Deal
The Ruias of Essar are in advanced negotiations to sell their Equinox business park in Mumbai to southern real estate developer RMZ Corp for Rs 2,400 crore, or $360 million, according to multiple sources directly familiar with the matter.
This is biggest commercial real estate deal in Mumbai, and one of the largest in India in recent years, as billionaire brothers Shashi and Ravi Ruia are divesting non-core assets to pare Essar's debt burden.
Essar's 1.2 million sqft park, located adjacent to Bandra Kurla Complex, houses tenants like IDFC, Tata Communications, Crompton Greaves, Nissan and Lafarge, besides Essar companies.Bengaluru-based RMZ, which is backed by Qatar Investment Authority (QIA), will pay around Rs 19,000 per sqft for the deal.
RMZ is expected to conclude the deal in two equal tranches spread over a six month period. The 100% acquisition is contingent upon both parties “meeting certain milestones“. RMZ vice-chairman, Manoj Menda, confirmed the deal talks but declined to comment on details, when contacted. Essar declined comment.
“The deal shows an improvement of interest in com mercial real estate and especially core rental yielding assets. The risks associated with such offices are much lower as they are fully constructed and there is no pressure of development and leasing,“ Anshuman Magazine, chairman and managing director, CBRE South Asia, said.
RMZ manages about 20 million sqft of office space across multiple cities currently, but is on the prowl for large acquisitions to build a 80 million sqft portfolio in the next five years.
“Discussions are in the final leg and the deal will carry an enterprise valuation of Rs 2,400 crore for Equinox,“ sources cited earlier in the report said. Diversified conglomerate Essar had been mul ling a divestment of its real estate business under Equinox brand for a while now. It is in separate discussions to sell a luxury housing project in Bengaluru to Salarpuria Sattva for just under $100 million, according to recent media reports.
RMZ's acquisition is the latest in a series of high profile office space deals as large global investors like Blackstone, GIC of Singapore, Brookfield Asset Management, Canadian Pension Plan Investment Board and Middle East sovereign funds have chased down transaction opportunities.They together acquired assets worth $3 billion during the last calendar year.
Article Courtesy: The Times of India