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RMZ Group to buy out Baring PE, Qatar Investment Authority combined stake
The Hindu Business Line  |  April 16, 2018

N Ramakrishnan K Giriprakash Chennai & Bengaluru

Real estate major RMZ Corp is set to buy out Baring PE and Qatar Investment Authority’s combined stake of 46 per cent in its company.


Sources close to the company told BusinessLine that a decision to this effect has been finalised, formalities are being completed and RMZ is close to raising the required funds to buyout the two investors.


The Bengaluru-based RMZ Corp is one of the leading commercial property developers in the country.


It has a very small presence in the residential space and, according to reports, may look at further reducing its presence there.


Baring PE holds 21 per cent stake in RMZ Corp, while Qatar Investment Authority (QIA), Qatar’s sovereign fund, holds 25 per cent stake.


Baring picked up a stake in RMZ in 2012 for Rs 450 crore, while QIA had invested Rs 600 crore in 2013. The Menda family owns nearly 54 per cent stake in the company.


Sources also said that in rupee terms the IRR for these two is expected to be upwards of 20 per cent and in dollar terms, 15 per cent plus. RMZ has 24 million sq ft of assets under management translating into $4 billion worth of total assets. The other partners in RMZ include AIG-GRE and Wells Fargo.


In Bengaluru, Boeing, Analog Devices and Ariba are some of its tenants, while in Chennai, and in other cities, Daimler, Ford, Deloitte and Google are some of its tenants. In an interaction with this newspaper in October last year, RMZ had said that it is seeking to increase the developed footprint to 60 million sq ft by 2020. The company also owns CoWrks, a shared office space.


An official with RMZ said that the company is scouting for more opportunities and is willing to partner with the others for development of commercial properties.