Indian developer RMZ sells real estate assets worth $2 billion to Canada’s Brookfield

RMZ will have zero debt after the deal that involves its rent-yielding offices and co-working spaces.

Privately held Indian developer RMZ Corp has sold 12.5 million square feet of its real estate assets to Brookfield Asset Management Inc for $2 billion, the Canadian asset manager said on Monday.

Under construction Residential project in Bangalore. (Mint)

The deal, which was reported earlier by Bloomberg and The Hindu newspaper, includes divestment of RMZ’s co-working business CoWrks, a Brookfield spokeswoman confirmed in an email.

RMZ will have zero debt after the deal that involves its rent-yielding offices and co-working spaces. It will use the money to expand its portfolio.

“The deal marks the largest-ever deal in the Indian real estate industry,” RMZ said in a statement.

The company will divest a part of its core portfolio across Bangalore and Chennai, it said.

The commercial real estate asset portfolio of RMZ is valued at about $10 billion, according to The Hindu newspaper of India.

The deal involved a sale of 18% of RMZ’s commercial assets portfolio.

The development comes as large foreign investors are buying into the Indian office market in recent years. Bengaluru-based developer Prestige Group signed an agreement last week with Blackstone Group Inc to sell rental income assets for about $1.6 billion.