Canada Pension Plan Investment Board (CPP Investments) and India-based privately owned real estate developer RMZ Corp have formed a joint venture to develop and hold commercial office space in Chennai and Hyderabad.
CPP Investments will invest INR 15,000,000,000 (US$210 million), which will allow for the expected development of 10.4 million square feet of high-quality commercial office sites.
“RMZ is widely recognized as one of the most innovative and prolific developers in India, dedicated to working to the highest standards across all aspects of the real estate equation. The partnership with CPP Investments, a globally respected institutional investor, will only strengthen our vision of achieving our hyper-growth strategy target of RMZ 2.0,” said Manoj Menda, Corporate Chairman, RMZ Corp. “The value of the partnership assets, once developed, is estimated to be over US$1.5 billion”.
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“RMZ is amongst the only zero-debt real estate companies globally. With equity deals for assets over the last few months, we have ample headroom to achieve our next phase of growth,” said Arshdeep Sethi, Managing Director, RMZ Corp.
The three sites that form this transaction – RMZ Nexity (Hyderabad), RMZ Spire (Hyderabad) and RMZ One Paramount (Chennai) – are Grade-A developments and will be examples of the highest-quality commercial space within the cities once completed. Of the 10.4 million square feet included in the transaction, 7.5 million square feet is already under active development with construction of the remaining space due to commence in the coming months.
“As India continues to be a strong source of global talent, demand for collaborative and engaging work space is expected to grow,” said Hari Krishna, Managing Director, Real Estate – India, CPP Investments. “Working alongside RMZ Corp, a pioneer in the commercial property industry, this joint venture is well placed to meet the growing demand for high-quality sustainable office assets in Chennai and Hyderabad.”