PremiumThe joint venture will be seeded with StarTech, a 1.37 million sq ft office building in Bengaluru’s Koramangala area, currently co-owned by RMZ and property developer Prestige Group. CPP Investments will acquire Prestige’s entire stake in StarTech
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BENGALURU, RMZ, RMZ CPP INVESTMENTS JV, STARTECH : Canada Pension Plan Investment Board (CPP Investments) and Bengaluru-based RMZ Corp said they have formed a second joint venture to develop and operate commercial office space in India. CPP Investments will invest about ₹2,650 crore into the alliance to help acquire and develop projects.
The joint venture will be seeded with StarTech, a 1.37 million sq ft office building in Bengaluru’s Koramangala area, currently co-owned by RMZ and property developer Prestige Group. CPP Investments will acquire Prestige’s entire stake in StarTech.
RMZ and CPP Investments formed their first joint venture in 2021 to develop and manage around 10 million sq ft of commercial office space in Hyderabad and Chennai. The Canadian fund had committed to invest $210 million in the first JV.
“We continue to identify high demand for premium commercial office space in top city locations in India such as Bengaluru. As the city grows as a destination for technology businesses and start-ups, we are working alongside market leaders such as RMZ to grow our portfolio to support the demand. Our overall focus remains to enhance our ability to deliver solid long-term risk adjusted returns to CPP contributors and beneficiaries," said Hari Krishna V, managing director, real estate – India, CPP Investments. In 2020, RMZ sold 18% or 12.8 million sq ft of office assets to a fund managed by Canada’s Brookfield Asset Management Inc. for $2 billion in one of the largest real estate deals in the country.
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