RMZ Group announces $7 billion investment plan for realty projects

Real estate giant RMZ Corporation is set to make a staggering investment of $7 billion over the next five years in developing a diverse range of realty projects, including offices, residences, warehouses, hospitality, and mixed-use properties. The Bengaluru-based company, privately owned by the Menda brothers, aims to capitalise on growth opportunities in the Indian real estate sector, expanding its portfolio to projects worth $25 billion across major cities.

Primarily known for developing Grade-A office complexes, RMZ Corporation is now venturing into various real estate segments. The ambitious growth plan comes alongside the appointment of Arshdeep Sethi as President of RMZ Real Estate, tasked with leading the company's strategic transition into an alternate asset owner.

"We will invest $7 billion in equity to create assets worth $25 billion in the next five years by diversifying its portfolio across various real estate businesses," said Sethi, emphasizing that the investment would be funded through internal accruals and collaborations with large global institutional investors.

The equity injection will be directed towards acquiring land and providing 30-35 per cent equity in each real estate project. RMZ Corporation has also appointed CEOs for different asset classes, reflecting its commitment to expansion and growth.

The company has set an ambitious target to expand its rent-yielding real estate business to $40 billion by 2029, up from the current $15 billion. The strategic transformation aligns with RMZ Corporation's commitment to become one of the world's largest family-owned alternate asset owners in the coming years.

RMZ Corporation plans to focus on six major cities—Bengaluru, Hyderabad, Chennai, Mumbai, Gurugram, and Pune. The residential business will initially target Mumbai and Gurugram, where demand and prices for luxury housing are high.

Over the next five years, the company aims to develop 50 million square feet of office assets worth $10.4 billion, 15 million square feet of mixed-use space worth $8 billion, 62 million square feet of industrial & warehousing space worth $3.6 billion, and more than 10 hotels worth $3.1 billion.

"We have great confidence in the India growth story and are committed to annually adding rent-yielding real estate around $5 billion to our portfolio, alongside annualised sales of $0.6 billion in luxury residential in 2029," said Sethi.

In 2020, RMZ Corporation completed the sale of its large commercial portfolio to Brookfield for $2 billion, and in 2021, it partnered with Canada Pension Plan Investment Board (CPPIB) to develop office complexes in Chennai and Hyderabad, with CPPIB investing $210 million in the joint venture.