Business

RMZ to sell commercial assets to Brookfield for Rs 14,000 crore

Bengaluru-based realty agency RMZ has agreed to sell its accomplished commercial assets portfolio and co-working enterprise to world funding agency Brookfield for an enterprise worth of round Rs 14,000 crore as a part of its technique to turn into debt free, sources stated.

The two corporations have already approached truthful commerce regulator CCI for approval of the proposed deal, they added.

RMZ has a complete debt of round Rs 12,500 crore and it’ll turn into a debt free as soon as the deal will get closed after regulatory approvals.

According to the sources, the corporate is promoting between 15 million sq ft and 20 million sq ft space of accomplished commercial area, primarily workplaces with small portion of retail.

The proposed deal additionally consists of full divestment of the group’s co-working enterprise CoWrks. The enterprise worth for your complete deal is pegged between Rs 13,000-14,000 crore, the sources stated.

After this deal, the corporate would nonetheless havearound 5-6 million sq ft space of accomplished workplace area and one other 35 million sq ft beneath development, they added.

“We shall not be extending any comments,” a Brookfield spokesperson stated whereas replying to an e-mail question.

Reply to question despatched to RMZ was awaited.

The 17-year-old RMZ group has over 200 enterprise clients in six Indian cities and over 60 million sq ft of accomplished and beneath development assets.

India’s workplace section has been performing very effectively regardless of total slowdown in the actual property market. The internet leasing stood at file 47 million sq ft in 2019 and it could drop this 12 months due to the coronavirus pandemic.

The workplace market can be attracting plenty of world institutional funding from gamers reminiscent of Blackstone, Brookefield and GIC.

Few years again, Singapore sovereign fund GIC had invested round Rs 9,000 crore for decide 33 per cent stake in commercial portfolio of realty main DLF.

Blackstone has made vital investments in commercial initiatives of Embassy group, Ok Raheja group and Salarpuria Sattva.

Prestige group is prematurely discussions with world funding agency Blackstone to sell its numerous commercial assets for an estimated Rs 12,000-13,500 crore as a part of its technique to clear debt and obtain future progress, sources had stated final month.

(Only the headline and film of this report could have been reworked by the Business Standard employees; the remainder of the content material is auto-generated from a syndicated feed.)



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