RMZ Corporation to invest $7 billion in diverse real estate projects over next 5 years

Realty firm RMZ Corporation has announced a substantial investment of $7 billion in equity over the next five years to venture into various real estate segments, including office spaces, residential complexes, warehouses, hospitality, and mixed-use projects in major Indian cities. The privately-owned Bengaluru-based company, owned by the Menda brothers, has traditionally focused on Grade-A office complexes but is now diversifying its real estate portfolio.

The $7 billion equity investment is earmarked for acquiring land and providing 30-35 per cent equity in each real estate project. Internal accruals and partnerships with global institutional investors will fund this initiative, according to Arshdeep Sethi, the newly appointed President of RMZ Real Estate.

The strategic shift aims to position RMZ Corporation as one of the world's largest family-owned alternate asset owners within the next five years. The company plans to expand its rent-yielding real estate business from $15 billion to $40 billion by 2029, reflecting the family's commitment to growth within alternate investment classes.

Strategic urban development

RMZ Corporation plans to concentrate its efforts on six major cities—Bengaluru, Hyderabad, Chennai, Mumbai, Gurugram, and Pune. The residential business will initially focus on Mumbai and Gurugram due to high demand and luxury housing prices.

Over the next five years, RMZ aims to develop 50 million square feet of office assets worth $10.4 billion, with ongoing and completed projects totaling 30 million square feet. In the mixed-use segment, the plan is to develop 15 million square feet worth $8 billion.

The company also aims to develop 62 million square feet of industrial and warehousing space worth $3.6 billion and build more than 10 hotels across cities, including Pune and Goa, with an estimated value of $3.1 billion. In the residential segment, the target is $0.6 billion in annualized sales by 2029.

RMZ Corporation expresses confidence in India's growth story and is committed to adding $5 billion in rent-yielding real estate to its portfolio annually, alongside the targeted annualized sales in luxury residential real estate by 2029. This strategic move follows RMZ Corporation's completion of a $2 billion sale of its commercial portfolio to Brookfield in December 2020 and a joint venture with Canada Pension Plan Investment Board in 2021 for developing office complexes in Chennai and Hyderabad, with a $210 million investment from CPPIB.

(With PTI Inputs)