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RMZ Looks to Double Commercial Portfolio
The Economic Times  |  June 17, 2019


Bengaluru-based RMZ Corp is looking to double its commercial portfolio to 75 million square feet over the next five years, said a senior executive who did not wished to be named.


The company, which recently entered into an agreement with DB Realty to transform the six-decade-old Kamalistan Studio in Mumbai, has acquired 30 acres in Gurugram to add to its growing office portfolio.


“The company hasn’t raised any foreign capital to develop projects. We bought back all foreign partners in 2018,” the executive said.


In one of the largest buybacks by a private company, RMZ Corp recently purchased 45% shares held by QIA and Baring Private Equity Partners for around $1 billion.


In 2013, QIA had invested Rs 600 crore in RMZ Corp for a 23% stake, while Baring Private Equity Partners had invested Rs 450 crore in 2012 for a 21% stake in the holding company, RMZ Infotech.


The home-grown firm currently has over 35 million sq ft of project operational assets across major cities in the country.


RMZ Corp also plans to acquire assets in key markets such as Bengaluru, Mumbai, Chennai and Hyderabad.


It has already consolidated its operations. Fresh investment at the SPV level will come in the form of debt that can either be bought back or sold to third-party investors, the senior executive said.


In 2018, the builder had put off plans to float a real estate investment trust following the buyback of shares from QIA and Baring Private Equity Partners. However, after the success of the first REIT, the firm may take that route again.


“It now plans to fuel the growth by developing properties on its own, as well as through acquisition of commercial properties,” the executive added.


RMZ is a privately-owned real estate investment, development and management firm.


RMZ Infotech, the operator of business parks, is owned by the billionaire brothers Raj Menda and Manoj Menda.