Sunday, December 18, 2011

RMZ in.1k cr IT SEZ deal Set To Buy Adarsh Prime Projects With PE Backing

Southern real estate major RMZ Corp is close to sealing a Rs 1,000 crore,or $200 million,deal to buyout an IT special economic zone Adarsh Prime Projects in the technology hub of Bangalore,said sources privy to the development.RMZ,one of the largest developers of commercial real estate,will rope in a private equity investor to clinch the transaction,which is in the process of meeting regulatory requirements.
RMZ will acquire the SEZ's 25 acre first phasewith 1.2 million sft pre-leased to tech majors Honeywell Technology Solutions,KPIT Cummins,Sasken Technologies and Subex as well as another 25 acre adjacent land with potential for 3.2 million sft development at a valuation close to Rs 1,000 crore,said one source who is involved with the process.The valuation includes debt of Rs 325 crore that will be paid to the financial institutions,he added.
Adarsh Prime Projects was put on the block by Bangalore-based Adarsh Developers.The SEZ is located on the city's outer ring road and is part of the fast developing technology corridor.This will be one of the largest SEZ transactions in recent past.Private equity firms like Blackstone and Warburg Pincus have been on the prowl to acquire IT parks from leveraged real estate developers like DLF Ltd and Embassy Property Developments.The IT industry's fairly robust employee addition plans,despite global economic uncertainties,make these acquisitions attractive.
We are in discussion with Adarsh for some commercial property and the transaction size has not yet been frozen.The deal would be finalized in two months, said RMZ Corp managing director Raj Menda,when contacted by media.BM Jayeshankar,MD of Adarsh Developers,said the company was looking to offload 1.2 mn sft of commercial space in Adarsh Prime Projects.The deal with RMZ does not include the upcoming Shangri-La resort and residential units that were part of the project,but which has been denotified before the transaction.

No comments:

Post a Comment