RMZ Corp divests 18% of their real assets worth USD 2 Billion to Brookfield
India’s largest privately-owned owner and operator of real assets, RMZ Corp has completed the sale of 12.8M sqft. of 67M sqft. (circa 18%) of their Real Estate assets to a fund managed by Brookfield Asset Management, for US$2 Billion. Marking the largest-ever deal in the Indian Real Estate industry, the US$2 Billion deal will fuel RMZ’s hypergrowth strategy of growing their real asset portfolio to 87M sft. and US$15 Billion from their current portfolio of US$10 Billion and 67M sft. over the next six years.
“The deal between RMZ Corp and Brookfield marks our most important milestones for the year- conversion to a ‘debt-free’ firm. At RMZ, we look forward to enhancing our hypergrowth strategy,” said Manoj Menda, Corporate Chairman, RMZ Corp.
The transacted portfolio has assets in Bangalore, Chennai, Pune and the groups co-working operator CoWrks. A part of RMZ’s largest real asset, RMZ Ecoworld is at the core of the transaction. It is a 14M sft. office development, located in Outer Ring Road, Bangalore of which 6.7M sft. is acquired by Brookfield. With the development of 18M sft. in the area, RMZ established Outer Ring Road, spearheading the micro-market to become the largest commercial real estate market by absorbance in the world.
The transaction marks India’s largest Real Estate deal with US$2 Billion in investment. RMZ channelized the investment to clear all their debts and fuel their hyper-growth strategy. Menda has previously attracted FDI into RMZ with Institutional Investors and created profitable exits for them. In 2013, Qatar Investment Authority (QIA) invested US$300M in RMZ. In 2018, they exited at US$1.2B, creating them rich value and returns over their investment tenure. RMZ is 100% owned by the Menda family.
RMZ’s hyper-growth strategy rests on forging long-term relationships with institutional investors. In 2019, RMZ Corp forged an equitable partnership with Mitsui Fudosan, a leading global real estate developer, for US$1Billion to jointly develop assets in India. The first development undertaken by partnership was the 3.5M sft. development, RMZ Ecoworld 30, in Bangalore.
“Our development pipeline delivers best-in-class assets in major markets. By adapting to the digital way of life, building integrated communities, and defining new benchmarks; we are here to transform the way we work,” added Mr. Menda on his vision.
Menda’s philosophy is to own the whole development lifecycle of a real asset. RMZ has demonstrated operational expertise on how to build, operate, own, mature and exit. From single properties to city-defining mixed developments, RMZ 2.0 will reimagine places with a focus on people. Setting out to pioneer new sustainability, technology and well-being solutions, RMZ aims to shape the future of how people work. RMZ owns the largest LEED Arc portfolio in the country. They are the first company globally to achieve the ‘Well Health-Safety Rating’ for supporting the health and safety of people in the fight against Covid-19.
About RMZ Corp: RMZ Corp is the country’s largest privately-owned real estate owner, investor, and developer who is committed to building socially, economically and environmentally responsible assets and communities. They are amongst the only zero debt real estate companies, globally. Their deeply unifying purpose is to leverage their integrated digital platform to build smart, engaged and quantified communities. 18 years and growing rapidly, they have over 200+ enterprise customers in 6 Indian cities with 67M sft. and $10 Billion of real assets that are owned by them. With a hyper-growth strategy and the use of exponential technologies they plan to build a 1M member quantified community across 800+ enterprise customers across 87M+ sft. and US$15 Billion of Real Assets.