The Canadian Pension Plan Investment Board will invest Rs 1,500 crore (USD 210 million) in the joint venture between RMZ Corp and Canada Pension Plan Investment Board to build office complexes in Chennai and Hyderabad.
RMZ Corp, a leading commercial real estate player based in Bengaluru, announced that it has formed a joint venture with Canada Pension Plan Investment Board (CPP Investments) to build and manage commercial office space in Chennai and Hyderabad. “CPP Investments will invest Rs 1,500 crore (USD 210 million),” according to RMZ, “which will allow the construction of 10.4 million square feet of high-quality commercial office sites.”
In the joint venture business, all partners would have an equal interest. The partnership assets are valued at over USD 1.5 billion once established, according to Manoj Menda, RMZ Corp’s Corporate Chairman.
Menda said, “Our partnership with CPP Investments, a globally renowned institutional investor, will only reinforce our vision of achieving our hyper-growth strategy goal of RMZ 2.0.” According to Arshdeep Sethi, Managing Director of RMZ Corp, RMZ is one of the few zero-debt real estate companies in the world. “We have enough headroom to achieve our next step of expansion, thanks to equity deals for assets over the last few months,” he said.
The three sites that make up this transaction are Graden-A developments: RMZ Nexity (Hyderabad), RMZ Spire (Hyderabad), and RMZ One Paramount (Chennai). 7.5 million square feet of the 10.4 million square feet included in the deal are currently under construction, with the remainder set to begin in the coming months. “Demand for interactive and engaging workspace is expected to expand as India continues to be a strong source of global talent,” said Hari Krishna, Managing Director, Real Estate – India, CPP Investments.
According to him, the joint venture is well-positioned to meet the rising demand for high-quality, long-term office assets in Chennai and Hyderabad. RMZ Corp completed the sale of its huge commercial portfolio to Brookfield for USD 2 billion in December of last year, making it India’s largest real estate transaction. Half of the proceeds were used to pay down loans, with the remainder set aside for potential expansion.