PE Firm To Hold 28% In RMZ Corps 6Mn Sft Project
Private equity giant Baring Private Equity Partners (BPEP) is investing $100 million (Rs 500 crore) in one of south Indias largest office space builders,RMZ Corp.The PE player will back RMZ Corps acquisition of 6 mn sft of office space in Bangalore.
It had previously reported that RMZ Corp is buying out a 50-acre office development,Adarsh Prime Projects,in a deal valued at Rs 1,080 crore.The transaction,one of the biggest in the office space segment,involves purchase of 1.2 mn sft of pre-leased space and land,with rights to build an additional 4.8 mn sft space.
Baring will pick up 28% stake in the special purpose vehicle (SPV) floated for this buyout.The SPV is one of RMZs group companies.The remaining stake will be held by RMZ.The deal with Baring is the second PE transaction for RMZ,which had attracted $350 million funding from AIG Global Real Estate five years ago.
RMZ declined to comment on this story.Baring Private Equity Partners (BPEP) India,one of the oldest PE firms in the country,manages assets worth over $1 billion.
RMZ currently has 6.5 mn sft of built-up office space across Bangalore,Chennai and Hyderabad.The deal to buyout the Adarsh project will almost double RMZs portfolio of office space.RMZ is also in talks with multiple developers to buyout an additional 5 mn sft in the three southern cities.
The real estate major wants to cash in on the demand for pre-leased office space coming from IT/ITeS companies expanding in the three southern cities.
The family-owned RMZ is exploring a REIT (real estate investment trust) listing of its office assets in the next five years."The first preference will be to do it in India if local regulations allow for such a platform.It would otherwise look at Singapore,where such a platform already exits,"said a source familiar with the plans.A REIT deploys investors money in commercial real estate assets.The trust pays dividend to shareholders from the rent accumulated from commercial properties.The capital market regulator Sebi is yet to finalise the guidelines for REIT listing.
Private equity giant Baring Private Equity Partners (BPEP) is investing $100 million (Rs 500 crore) in one of south Indias largest office space builders,RMZ Corp.The PE player will back RMZ Corps acquisition of 6 mn sft of office space in Bangalore.
It had previously reported that RMZ Corp is buying out a 50-acre office development,Adarsh Prime Projects,in a deal valued at Rs 1,080 crore.The transaction,one of the biggest in the office space segment,involves purchase of 1.2 mn sft of pre-leased space and land,with rights to build an additional 4.8 mn sft space.
Baring will pick up 28% stake in the special purpose vehicle (SPV) floated for this buyout.The SPV is one of RMZs group companies.The remaining stake will be held by RMZ.The deal with Baring is the second PE transaction for RMZ,which had attracted $350 million funding from AIG Global Real Estate five years ago.
RMZ declined to comment on this story.Baring Private Equity Partners (BPEP) India,one of the oldest PE firms in the country,manages assets worth over $1 billion.
RMZ currently has 6.5 mn sft of built-up office space across Bangalore,Chennai and Hyderabad.The deal to buyout the Adarsh project will almost double RMZs portfolio of office space.RMZ is also in talks with multiple developers to buyout an additional 5 mn sft in the three southern cities.
The real estate major wants to cash in on the demand for pre-leased office space coming from IT/ITeS companies expanding in the three southern cities.
The family-owned RMZ is exploring a REIT (real estate investment trust) listing of its office assets in the next five years."The first preference will be to do it in India if local regulations allow for such a platform.It would otherwise look at Singapore,where such a platform already exits,"said a source familiar with the plans.A REIT deploys investors money in commercial real estate assets.The trust pays dividend to shareholders from the rent accumulated from commercial properties.The capital market regulator Sebi is yet to finalise the guidelines for REIT listing.
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