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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 buys Essar Biz Park in Mumbai for Rs. 2,400cr @rmz_corp @timesofindia
Southern real estate major RMZ Corp has acquired Equinox Business Park, owned by billionaire brothers Shashi and Ravi Ruia of Essar, in Mumbai for Rs 2400 crore, in possibly the biggest M&A deal in the country's booming office space market.
The 1.25 million sqft Equinox, located adjacent to Bandra Kurla Complex (BKC), houses tenants like Nissan Motors, Lafarge, Crompton Greaves, Tata Communications, besides Essar offices. RMZ, in which Qatar Investment Authority, is an investor is said to have paid Rs 19,000 per sqft. TOI had reported on the impending deal in its December 2 edition.
“We are confident that with this acquisition we will extend our core businesses into the growing markets with a world-class development opportunity in the heart of one of Mumbai's major regeneration zones“ Manoj Menda, corporate vice chairman, RMZ Corp, said. “This transaction fits in with Essar's strategy of successfully building businesses and actively managing the portfolio of assets to create and deliver value. This is in line with the present objective and focus of Essar to monetise non core assets and deleverage the balance sheet,“ Anshuman Ruia of Essar said.
Menda said the deal was a significant step in achieving RMZ's target of owning 80 million sqft of rent yielding office space in the next five years, up from the current portfolio of 20 million sqft across India's top cities. This puts Bengaluru-headquartered RMZ and Qatar combine in direct race with cross town rival Embassy Office Parks to emerge as the country's top office landlord. Private equity giant Blackstone Group owns 50% stake in Embassy Office Parks. Last month, RMZ announced acquisition of an eight lakh sqft Gurgaon IT park from New Delhi based property developer BPTP for Rs 900 crore.
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.
Brookfield's acquisition of Unitech Corporate Parks in a multi-layered deal is seen as the biggest acquisition in Indian office space market. While it paid Rs 2050 crore for majority control of six parks in NCR and Kolkata, it also paid an undisclosed amount to buy Unitech's 40% holdings most of these assets.