RMZ has a strategic partnership with Hyderabad’s largest business house, My Home Group, to develop premium commercial office spaces in the city. (PTI)
RMZ Corp, one of the large office space developers in Bengaluru, will be investing $1 billion for developing about 10 million sq ft of Grade A premium office space in Hyderabad. RMZ, which is backed by sovereign wealth fund Qatar Investment Authority (QIA), is in talks with multiple private equity (PE) players and existing investors to raise another round of funds to the tune of Rs 1,200 crore to Rs 2,000 crore.
“This is part of the company’s strategy to develop 40 million sq ft of commercial space in cities like Hyderabad, Bengaluru, Chennai Pune, Mumbai and New Delhi taking its total assets under management to 60 million sq ft by 2020,” managing director Thirumal Govindraj said on Friday.
“We will be investing $1 billion in the next three to four years in Hyderabad looking at the increasing demand for Grade A office space,” he added
RMZ has a strategic partnership with Hyderabad’s largest business house, My Home Group, to develop premium commercial office spaces in the city with an investment of over $1 billion. Spread across 10 million sq ft, the office space project will be jointly developed and managed by RMZ and My Home Group. “The first phase of this extensive project, The Skyview, covering 3.5 million sq ft, is already under way at Silicon Valley of Hyderabad with close proximity to HITEC City, the hub of IT and ITeS companies. It is expected to be delivered by December 2018,” he said.
RMZ currently holds a portfolio of over 20 million sq ft and $5 billion of assets under management (AUM), creating a portfolio of rent-yielding commercial assets in India. It has partnerships with marquee investors including QIA, which has invested about Rs 1,200 crore that is likely to be doubled with new projects comings in.
“We are looking at both development platform and core acquisition platform and are looking to raise fresh funds. We are in talks with CPPIB (Canadian Pension Plan Investment Board) and existing shareholder QIA to raise about Rs 1,200 crore to Rs 2,000 crore to expand our asset portfolio. This could provide an exit for our another investor Baring Private Equity Partners India which has invested about Rs 400 crore to Rs 500 crore equity in 2012,” Govindraj added
A recent JLL report said commercial leasing and absorption of Grade A commercial spaces in Hyderabad has picked up to 1.2 million sq ft and vacancy dropped to 8% in 2016 from 10% in 2015. This comes on the back of IT, digital and e-commerce companies announcing huge investments in Hyderabad. Major players like Amazon, Google, Deloitte, UHG, JPMorgan, Qualcomm, Accenture, Hyundai Mobis, CDK Global and Uber are taking up commercial space this year in the city.
