Despite the overall slowdown in real estate, India’s office property market has been doing well for the last few years.
RMZ sold 18 percent of the total space to Brookfield. Brookfield has also bought 6 SEZs from Unitech in 2014.
Brookfield Asset Management, a Canadian asset management company, has purchased a 12.5 million sqft commercial property from RMZ Group in Bangalore. The deal has been done for about $ 2 billion to 14680 crore rupees. RMZ Group has informed about the deal. It is believed to be Brookfield’s largest real estate deal in South Asia.
RMZ Group will become debt-free from this deal
RMZ Group has said that the money it gets from this deal will make it debt-free. RMZ is a private real estate company and the owners of this company are Raj and Manoj Menda. In a statement issued by RMZ, it is said that it is the biggest deal of India’s real estate industry till date. The deal has been approved by the Competition Commission of India (CCI) on 29 September.
Total 67 million square feet of RMZ’s portfolio
The RMZ Group has a total of 67 million square feet of space in its portfolio. Of this, 18 percent has been sold to Brookfield. The deal also includes co-works of RMZ’s co-working business. RMZ corporate chairman Manoj Menda says that RMZ has become the first zero debt company globally after this disinvestment. This deal gives us enough space to achieve the next phase of growth target.
RMZ Group wants to build 85 million sq ft portfolio
RMZ says the deal will help the company expand its portfolio to 85 million square feet. This target will be met in the next 6 years. Arshdeep Singh Sethi, managing director of RMZ, says the deal will be very influential for the commercial real estate industry. The company has both developed and under-developed properties in its portfolio. The company’s assets are close to $ 10 billion.
Will help Brookfield strengthen its portfolio in India
The deal will help global investment company Brookfield strengthen its portfolio in India’s real estate market. Brookfield has already filed a document with SEBI to issue REITs worth Rs 4000 crore. Brookfield bought 6 SEZs from Unitech in 2014 in Gurugram, Noida and Kolkata. The deal was done for 3 thousand crores rupees. In 2016, the company bought the office and retail space in Mumbai from the Hiranandani Group for Rs 6700 crore.
Better performance of office property market
Despite the overall slowdown in real estate, India’s office property market has been doing well for the last few years. There is a strong demand for corporate office space from the top-7 cities in the country. The country’s office property segment has the potential to woo global institutional investors. Recently Prestige Group has announced an agreement to sell office, retail and two hotel properties to Blackstone. However, the company has not disclosed the amount of this possible deal. In December last year, promoters of DLF sold 33.34 per cent of the company’s rental portfolio for Rs 9,000 crore.
Blackstone invested $ 8 billion in India
American company Blackstone has so far invested $ 8 billion in India’s real estate. It has also sponsored 2 rets launched in India so far. Apart from this, Blackstone has also invested in commercial projects of Salarpuriya Satava in Bangalore and Panchsheel Realty in Pune. A total of 47 million office space was leased in the country in 2019. But this year there has been a decline due to the coronavirus epidemic.