Bengaluru-based real estate major RMZ Corporation says that it has transitioned into an alternate asset owner with five verticals spanning office, mixed-use, industrial, logistics, ultra-luxury residential (living), and hospitality sectors with a capex allocation of several billion dollars over the upcoming five years.
- Also read: Bengaluru start-up Squadrone to deploy advanced drones for Silkyara Tunnel rescue operation
RMZ’s evolution from a commercial real estate-centric enterprise to a diversified alternate asset owner comes with the objective of creating assets worth $25 billion over the next five years.
This includes plans for 50 million sq ft of office space worth $10.4 billion in six markets, 15 million sq ft of mixed-use worth $8 billion in Delhi NCR, Mumbai, and Bengaluru, and 62 million sq ft of industrial and logistics worth $3.6 billion. The hospitality sector will witness the development of over 10 hotels - which will be a mix of business and leisure hotels, worth $3.1 billion. Additionally, it is branching into luxury residential projects with projected annualized sales of $0.6 billion.
Strategic transformation
Moreover, this strategic transformation aligns with its aim to ensure a substantial rent-yielding real estate business by 2029.
Governance is overseen by a Supervisory Board, chaired by the Menda brothers, Raj and Manoj, and involving the family’s second generation, Sidharth and Mihir. Meanwhile, the Executive Board, comprising non-family senior leaders, manages the firm’s diverse businesses.
According to Raj and Manoj Menda, Chairs of the Supervisory Board, RMZ Corporation, “We are deeply focused on investing in high-growth opportunities across geographies that lay the foundations for a sustainable global economy. With the assistance of our second generation, Sidharth and Mihir, we are positioned to become among the world’s largest family-owned alternate asset owners in the next 5 years.”
Further, the company has appointed Arshdeep Sethi as President of RMZ Real Estate, with CEOs for each asset class: Thirumal Govindraj, CEO, RMZ Office; Avnish Singh, CEO, RMZ Mixed Use; Saandip Kundu, CEO, RMZ Living; Avinash Sule, CEO, RMZ Industrial & Logistics; and RMZ Hospitality.
“With a two-decade legacy in the real estate industry, we are well-positioned to expand into four additional real estate asset classes. Our primary objective is to create exceptional assets and high-quality portfolios on a global scale,” said Arshdeep Sethi, the newly appointed President of RMZ Real Estate.
Funding
Regarding funding, the expansion plan involves a mix of equity and debt, with $7 billion in equity across all five verticals. Conversations with investors are ongoing to secure growth capital, with existing tie-ups with player including Canada Pension Plan Investment Board, he added.
“We have great confidence in the India growth story and are committed to annually adding rent-yielding real estate around $ 5 billion to our portfolio, alongside annualized sales of $ 0.6 billion in luxury residential in 2029,” said Sethi.
While international expansion is temporarily paused, the company plans to refocus on it in late 2024. One-fifth of its capital allocation is earmarked for acquiring and developing premium real estate in key global markets like London and New York.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.