Key Points:
- The Canadian asset manager Brookfield is acquiring 12.5 million square feet of rent-yielding offices and co-working spaces in Bengaluru, Chennai from RMZ Corp.
- It aims to grow its real estate asset portfolio to 85 million sq ft from the current level of 67 million sq ft over the next six years.
Large foreign investors are buying into the Indian office market in recent years. The Canadian company, Brookfield Asset Management will buy an Indian developer’s commercial properties for $2 billion. It is the biggest real estate deal in the South Asian nation.
“The deal marks the largest-ever deal in the Indian real estate industry,”
RMZ said in a statement.
Brookfield is acquiring 12.5 million square feet of rent-yielding offices and co-working spaces from RMZ Corp. The privately held developer said in a statement on Monday. The Indian firm said it will have zero debt after the transaction and will use the money to expand its portfolio.
The transaction “highlights the constant strength and resilience of the commercial office business,”
Arshdeep Singh Sethi, RMZ’s managing director, said in the statement.
The firm plans to grow its real asset portfolio to 850 lakh square feet over the next six years from 670 lakh square feet. Some of the clients in RMZ’s technology and business parks include Accenture, Google and HSBC. Bangalore and Chennai will have the separated part of the company’s core portfolio, RMZ.
The Hindu says that the commercial real estate asset portfolio of RMZ is valued at about $10 billion. The deal involved a sale of 18% of RMZ’s commercial assets portfolio.
Since 2011, the segment has put away $15.4 billion of equity investments, according to property research firm Knight Frank. Blackstone last week signed a non-binding agreement to buy some assets, a deal Bloomberg News previously reported could be worth $2 billion.
