The Hindu Business Line : RMZ Corp plans big splash in retail, hospitality sectors

The trend
IT lease rentals increased by 5 per cent in the last one year despite property prices increasing substantially.
Multi-national companies find India a competitive destination to do business in.

Chennai , Dec. 10

RMZ Corp, the Bangalore-based property developer, plans to make a big splash in retail, residential and hospitality sectors, for which it will tie up foreign direct investment into three special purpose vehicles.

Joint ventures

According to Mr Raj Menda, Managing Director, RMZ Corp, the company will have three joint ventures - one for retail, one for office and hospitality sectors, and one for the residential sector - for a pan-India relationship.

Currently, RMZ concentrates only on providing office space, mainly targeting the information technology and information technology-enabled services sectors.

Mr Menda declined to provide details about the extent of foreign direct investment or the names of companies making the investment, citing non-disclosure agreements. He also said RMZ Corp was not looking to tap either the capital market or tie up with a private equity investor right now. RMZ, which has been focussing on Bangalore, Chennai, Hyderabad, Pune and Kolkata, will also extend its activities in all the sectors to Coimbatore, Mysore, Mangalore, Kochi and Nagpur.

He told Business Line on the sidelines of a real estate conference organised by the Confederation of Indian Industry here on Saturday that the turnover figure for this year would be 38 lakh sq ft, of which 90 per cent was leased out and the balance sold. It would end the next financial year with a turnover of 45 lakh sq ft.

He preferred to give the company's turnover in terms of area developed rather than provide financial figures.

Mr Menda said that in the hospitality sector, the company would enter the four- and five-star categories with its own properties. It would tie up with an international chain that would manage the hotels.

RMZ plans to have 10 hotels - four in the five-star category and the rest in the four-star category - in the next four years across the cities and towns that it had projects in.

On real estate trends, Mr Menda said that IT lease rentals increased by 5 per cent in the last one year despite property prices increasing substantially.

Multi-national companies found India a competitive destination to do business in.

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