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RMZ divests 18% of their real estate assets worth $2 billion to Brookfield

BENGALURU: Bangalore-basedRMZCorp has completed the sale of 12.8M sqft. of 67M sqft. (circa 18%) of theirReal Estateassets to a fund managed byBrookfield Asset Management, for $2 billion, marking the largest-ever deal in the Indian real estate industry.

The deal will fuel RMZ’s hyper- growth strategy of growing their real asset portfolio to 87M sqft. and US$15 billion from their current portfolio of $10 billion and 67 mnsqft. 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” arm. At RMZ, we look forward to enhancing our hyper- growth 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 sqft. once development, located in Outer Ring Road, Bangalore of which 6.7M sqft. is acquired by Brookfield. With the development of 18M sqft. 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.

RMZ channelized the investment to clear all their debts and fuel their hyper-growth strategy.

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 $1 billion to jointly develop assets in India. In 2013, Qatar Investment Authority (QIA) invested $300 mn in RMZ.

“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 Menda on his vision.
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