Business

Brookfield to buy 18% of RMZ’s assets for $2 billion

In one of the biggest deals in the real estate sector in the country, Bengaluru-based realty firm RMZ has agreed to sell about 18% of its commercial assets portfolio to global investment firm Brookfield for $2 billion.

“RMZ has decided to divest a part of our core portfolio across Bengaluru and Chennai to raise $2 billion of fresh capital,” RMZ chairman Manoj Menda said in a statement. “Upon divestment, RMZ is now among the only zero debt real estate companies globally,” he asserted.

Mr. Menda added that with this deal, the company now had ample headroom to achieve its next phase of growth. RMZ aims to grow its real asset portfolio to 85 million sq. ft. over the next six years. RMZ, whose debt is estimated at ₹12,500 crore, has sold 12.5 million sq. ft. of its total real estate assets of about 67 million sq. ft. The deal also includes divestment of the group’s co-working business CoWrks.

The commercial real estate asset portfolio of RMZ is valued at about $10 billion.

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Printable version | Nov 26, 2020 4:07:02 PM | https://www.thehindu.com/business/brookfield-to-buy-18-of-rmzs-assets-for-2-billion/article32895458.ece

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